Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 91203-2346 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.4 | ||
Entity Common Stock, Shares Outstanding | 17,067,586 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on Thursday, May 12, 2022 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. | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000049754 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | ERNST & YOUNG LLP |
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 361,412 | $ 383,369 |
Receivables, net of allowance of $4,959 (2021) and $15,057 (2020) | 119,968 | 121,897 |
Restricted cash | 47,541 | 39,884 |
Prepaid gift card costs | 28,175 | 29,080 |
Prepaid income taxes | 10,529 | 6,178 |
Other current assets | 6,728 | 6,098 |
Total current assets | 574,353 | 586,506 |
Other intangible assets, net | 539,390 | 549,671 |
Operating lease right-of-use assets | 335,428 | 346,086 |
Goodwill | 251,628 | 251,628 |
Property and equipment, net | 179,411 | 187,977 |
Deferred rent receivable | 50,257 | 56,449 |
Long-term receivables, net of allowance of $6,897 (2021) and $7,999 (2020) | 42,493 | 54,512 |
Non-current restricted cash | 16,400 | 32,800 |
Other non-current assets, net | 10,006 | 9,316 |
Total assets | 1,999,366 | 2,074,945 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 13,000 |
Accounts payable | 55,956 | 37,424 |
Gift card liability | 165,530 | 144,159 |
Current maturities of operating lease obligations | 72,079 | 69,672 |
Current maturities of finance lease and financing obligations | 10,693 | 11,293 |
Accrued employee compensation and benefits | 40,785 | 21,237 |
Accrued advertising expenses | 33,752 | 21,641 |
Deferred franchise revenue, short-term | 7,246 | 7,682 |
Dividends payable | 6,919 | 0 |
Other accrued expenses | 17,770 | 22,460 |
Total current liabilities | 410,730 | 348,568 |
Long-term debt, net, less current maturities | 1,279,623 | 1,491,996 |
Operating lease obligations, less current maturities | 320,848 | 345,163 |
Finance lease obligations, less current maturities | 59,625 | 69,012 |
Financing obligations, less current maturities | 31,967 | 32,797 |
Deferred income taxes, net | 76,228 | 78,293 |
Deferred franchise revenue, long-term | 46,100 | 52,237 |
Other non-current liabilities | 17,052 | 11,530 |
Total liabilities | 2,242,173 | 2,429,596 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $1 par value, 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; shares: 40,000,000 authorized; 2021 -24,992,275 issued, 17,163,946 outstanding; 2020 - 24,882,122 issued, 16,452,174 outstanding | 250 | 249 |
Additional paid-in-capital | 256,189 | 257,625 |
Retained earnings (accumulated deficit) | 35,415 | (55,553) |
Accumulated other comprehensive loss | (59) | (55) |
Treasury stock, at cost; shares: 2021 - 7,828,329; 2020 - 8,429,948 | (534,602) | (556,917) |
Total stockholders' deficit | (242,807) | (354,651) |
Total liabilities and stockholders' deficit | $ 1,999,366 | $ 2,074,945 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Receivables, allowance for credit loss | $ 4,959 | $ 15,057 |
Long-term receivables, allowance for credit loss | $ 6,897 | $ 7,999 |
Stockholders' deficit: | ||
Preferred stock, par or stated value per share (in dollars per share) | $ 1 | $ 1 |
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, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 24,992,275 | 24,882,122 |
Common stock, shares outstanding (in shares) | 17,163,946 | 16,452,174 |
Treasury stock, shares outstanding (in shares) | 7,828,329 | 8,429,948 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Rental revenues | $ 113,933 | $ 105,939 | $ 120,666 |
Total revenues | 896,167 | 689,268 | 910,178 |
Cost of revenues: | |||
Total franchise expenses | 295,887 | 238,972 | 312,754 |
Company restaurant expenses | 136,748 | 111,550 | 123,272 |
Interest expense from finance leases | 3,446 | 4,563 | 5,602 |
Other rental expenses | 84,397 | 84,939 | 85,157 |
Total rental expenses | 87,843 | 89,502 | 90,759 |
Financing expenses | 464 | 528 | 579 |
Total cost of revenues | 520,942 | 440,552 | 527,364 |
Gross profit | 375,225 | 248,716 | 382,814 |
General and administrative expenses | 171,838 | 144,791 | 162,815 |
Interest expense, net | 63,331 | 66,895 | 60,393 |
Closure and impairment charges | 5,409 | 132,620 | 1,487 |
Amortization of intangible assets | 10,679 | 10,903 | 11,702 |
Loss on extinguishment of debt | 0 | 0 | 8,276 |
Loss (gain) on disposition of assets | 2,045 | 2,069 | (332) |
Income (loss) before income taxes | 121,923 | (108,562) | 138,473 |
Income tax (provision) benefit | (24,059) | 4,568 | (34,127) |
Net income (loss) | 97,864 | (103,994) | 104,346 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment | (4) | 3 | 2 |
Total comprehensive income (loss) | 97,860 | (103,991) | 104,348 |
Net income (loss) available to common stockholders: | |||
Net income (loss) | 97,864 | (103,994) | 104,346 |
Less: Net income allocated to unvested participating restricted stock | (2,295) | (420) | (3,532) |
Net income (loss) available to common stockholders | $ 95,569 | $ (104,414) | $ 100,814 |
Net income (loss) available to common stockholders per share: | |||
Basic (in dollars per share) | $ 5.69 | $ (6.43) | $ 5.95 |
Diluted (in dollars per share) | $ 5.66 | $ (6.43) | $ 5.85 |
Weighted average shares outstanding: | |||
Basic (in shares) | 16,799 | 16,230 | 16,934 |
Diluted (in shares) | 16,890 | 16,230 | 17,245 |
Franchise revenues | |||
Revenues: | |||
Total franchise revenues | $ 631,936 | $ 469,453 | $ 651,186 |
Royalties, franchise fees and other | |||
Revenues: | |||
Total franchise revenues | 357,146 | 267,959 | 368,171 |
Advertising revenues | |||
Revenues: | |||
Total franchise revenues | 274,790 | 201,494 | 283,015 |
Company restaurant sales | |||
Revenues: | |||
Total franchise revenues | 146,000 | 108,054 | 131,214 |
Financing revenues | |||
Revenues: | |||
Total franchise revenues | 4,298 | 5,822 | 7,112 |
Advertising expenses | |||
Revenues: | |||
Total franchise revenues | 274,790 | 201,494 | 283,015 |
Cost of revenues: | |||
Total franchise expenses | 272,303 | 202,012 | 281,781 |
Bad debt (credit) expense | |||
Cost of revenues: | |||
Total franchise expenses | (4,928) | 12,756 | (365) |
Other franchise expenses | |||
Cost of revenues: | |||
Total franchise expenses | $ 28,512 | $ 24,204 | $ 31,338 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period Of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Common stock, shares, outstanding, beginning (in shares) at Dec. 31, 2018 | 17,644,000 | |||||||
Stockholders' equity, beginning of the period at Dec. 31, 2018 | $ (202,273) | $ (5,030) | $ 250 | $ 237,726 | $ 10,414 | $ (5,030) | $ (60) | $ (450,603) |
Treasury stock, shares, beginning (in shares) at Dec. 31, 2018 | 7,341,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-02 [Member] | |||||||
Net income (loss) | $ 104,346 | 104,346 | ||||||
Other comprehensive gain | 2 | 2 | ||||||
Purchase of common stock (in shares) | (1,348,000) | (1,348,000) | ||||||
Purchase of 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 | |||||||
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) | |||||
Tax payments for share settlement of restricted stock units | (76) | (76) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2019 | 16,522,000 | |||||||
Stockholders' equity, ending of the period at Dec. 31, 2019 | $ (241,774) | $ (497) | $ 249 | 246,192 | 61,653 | $ (497) | (58) | $ (549,810) |
Treasury stock, shares, ending (in shares) at Dec. 31, 2019 | 8,404,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||
Net income (loss) | $ (103,994) | (103,994) | ||||||
Other comprehensive gain | 3 | 3 | ||||||
Purchase of common stock (in shares) | (460,000) | (460,000) | ||||||
Purchase of common stock | $ (26,527) | $ (26,527) | ||||||
Reissuance of treasury stock (in shares) | 433,477 | 433,000 | 433,000 | |||||
Reissuance of treasury stock | $ 20,522 | 1,102 | $ 19,420 | |||||
Net issuance of shares for stock plans (in shares) | 8,000 | |||||||
Repurchase of restricted shares (in shares) | (36,000) | |||||||
Repurchase of restricted shares for taxes | (2,479) | (2,479) | ||||||
Stock-based compensation | 12,508 | 12,508 | ||||||
Dividends on common stock | (12,208) | 507 | (12,715) | |||||
Tax payments for share settlement of restricted stock units | $ (205) | (205) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2020 | 16,452,174 | 16,452,000 | ||||||
Stockholders' equity, ending of the period at Dec. 31, 2020 | $ (354,651) | $ 249 | 257,625 | (55,553) | (55) | $ (556,917) | ||
Treasury stock, shares, ending (in shares) at Dec. 31, 2020 | 8,429,948 | 8,430,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 97,864 | 97,864 | ||||||
Other comprehensive gain | (4) | (4) | ||||||
Purchase of common stock (in shares) | (59,000) | (59,000) | ||||||
Purchase of common stock | $ (4,480) | $ (4,480) | ||||||
Reissuance of treasury stock (in shares) | 660,718 | 661,000 | 661,000 | |||||
Reissuance of treasury stock | $ 25,337 | $ 1 | (1,459) | $ 26,795 | ||||
Net issuance of shares for stock plans (in shares) | 132,000 | |||||||
Repurchase of restricted shares (in shares) | (22,000) | |||||||
Repurchase of restricted shares for taxes | (1,771) | (1,771) | ||||||
Stock-based compensation | 11,577 | 11,577 | ||||||
Dividends on common stock | (6,896) | 0 | (6,896) | |||||
Tax payments for share settlement of restricted stock units | $ (9,783) | (9,783) | ||||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2021 | 17,163,946 | 17,164,000 | ||||||
Stockholders' equity, ending of the period at Dec. 31, 2021 | $ (242,807) | $ 250 | $ 256,189 | $ 35,415 | $ (59) | $ (534,602) | ||
Treasury stock, shares, ending (in shares) at Dec. 31, 2021 | 7,828,329 | 7,828,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income (loss) | $ 97,864 | $ (103,994) | $ 104,346 |
Adjustments to reconcile net income (loss) to cash flows provided by operating activities: | |||
Depreciation and amortization | 39,885 | 42,829 | 42,493 |
Non-cash stock-based compensation expense | 11,577 | 12,508 | 10,808 |
Non-cash closure and impairment charges | 5,324 | 132,501 | 1,485 |
Non-cash interest expense | 2,852 | 2,698 | 3,369 |
Deferred income taxes | (2,065) | (20,049) | (5,494) |
Deferred revenue | (6,573) | (7,111) | (7,695) |
Loss on extinguishment of debt | 0 | 0 | 8,276 |
Loss (gain) on disposition of assets | 2,041 | 2,069 | (332) |
Other | (1,593) | (1,246) | (3,568) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 7,301 | (9,750) | (396) |
Deferred rent receivable | 6,192 | 13,859 | 6,761 |
Current income tax receivables and payables | (3,837) | 16,143 | 8,677 |
Operating lease assets and liabilities | (18,212) | (15,179) | (8,567) |
Gift card receivables and payables | 14,759 | 12,231 | (1,037) |
Other current assets | (629) | (2,191) | (498) |
Accounts payable | 13,131 | 6,455 | 583 |
Accrued employee compensation and benefits | 19,714 | (1,909) | (3,575) |
Accrued advertising expenses | 12,111 | 12,881 | (1,166) |
Other current liabilities | (4,007) | 3,758 | 710 |
Cash flows provided by operating activities | 195,835 | 96,503 | 155,180 |
Cash flows from investing activities | |||
Principal receipts from notes, equipment contracts and other long-term receivables | 20,230 | 31,155 | 24,075 |
Net additions to property and equipment | (16,849) | (10,927) | (19,424) |
Proceeds from sale of property and equipment | 946 | 537 | 2,540 |
Additions to long-term receivables | 0 | (1,475) | (6,955) |
Other | (466) | (565) | (389) |
Cash flows provided by (used in) investing activities | 3,861 | 18,725 | (153) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 0 | 0 | 1,300,000 |
Repayment of long-term debt | (9,750) | (3,250) | (1,283,750) |
Borrowings from revolving credit facility | 0 | 220,000 | 0 |
Repayments of revolving credit facility | (220,000) | 0 | (25,000) |
Payment of debt issuance costs | 0 | 0 | (13,150) |
Dividends paid on common stock | 0 | (23,934) | (46,859) |
Repurchase of common stock | (4,191) | (29,853) | (109,698) |
Principal payments of finance lease obligations | (10,238) | (12,451) | (13,639) |
Proceeds from stock options exercised | 25,337 | 20,523 | 11,969 |
Repurchase of restricted stock for tax payments upon vesting | (1,771) | (2,480) | (2,728) |
Tax payments for share settlement of restricted stock units | (9,783) | (205) | (76) |
Cash flows (used in) provided by financing activities | (230,396) | 168,350 | (182,931) |
Net change in cash, cash equivalents and restricted cash | (30,700) | 283,578 | (27,904) |
Cash, cash equivalents and restricted cash at beginning of year | 456,053 | 172,475 | 200,379 |
Cash, cash equivalents and restricted cash at end of year | 425,353 | 456,053 | 172,475 |
Supplemental disclosures | |||
Interest paid | 65,229 | 69,208 | 66,104 |
Income taxes paid | 31,300 | 11,873 | 44,748 |
Non-cash conversion of accounts receivable to notes receivable | $ 4,258 | $ 1,307 | $ 185 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2021 | |
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. ® (“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, 2021, there were 1,751 IHOP restaurants, of which 1,595 were subject to franchise agreements and 156 were subject to area license agreements. These IHOP restaurants were located in all 50 states of the United States, the District of Columbia, two United States territories and seven countries outside the United States. As of December 31, 2021, there were 1,680 Applebee's ® restaurants, of which 1,611 were subject to franchise agreements and 69 were company-operated restaurants. These Applebee's restaurants were located in 49 states of the United States, two United States territories and 11 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, 2021 | |
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 December 31, 2021 fiscal year ended January 2, 2022 and contained 52 weeks. The 2020 fiscal year ended January 3, 2021 contained 53 weeks. The 2019 fiscal year ended December 29, 2019 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. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the outbreak of a novel strain of coronavirus, designated “COVID-19” and declared to be a pandemic in March 2020. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state and local governments reacted to the public health crisis by encouraging and/or requiring social distancing, instituting shelter-in-place orders, and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales during the initial stages of the pandemic. Subsequently, government-imposed dine-in restrictions have been relaxed, removed and reinstated as incidents of infection decrease or increase within the respective governmental jurisdictions. As of December 31, 2021, 99% of domestic Applebee's and IHOP restaurants and 32% of international Applebee's and IHOP restaurants were open and operating without government-mandated restriction. We cannot predict how long the pandemic will last, whether/when recurrences of the virus and its variants may arise, what restrictions on in-restaurant dining may be enacted or re-enacted, the availability and acceptance of vaccines, the timing and extent of customer re-engagement with the Company's brands and, in general, what the short- and long-term impact on consumer discretionary spending the COVID-19 pandemic might have on the Company and the restaurant industry as a whole, all of which are uncertain and cannot be predicted. As such, the extent to which the COVID-19 pandemic may continue to materially impact the Company's financial condition, liquidity, or results of operations remains highly uncertain. 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, real estate 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, 2021, two franchisees (one Applebee's franchisee and one franchisee with cross-brand ownership) operated a combined total of 825 Applebee's and IHOP restaurants in the United States, which comprised 26.1% of the total Applebee's and IHOP franchise and area license restaurants in the United States. Revenues from these two franchisees represented 18.0%, 17.1%, and 17.4% of total consolidated revenue for the years ended December 31, 2021, 2020 and 2019, respectively. One franchisee represented 11.8%, 11.0% and 10.6% of total consolidated revenue for the years ended December 31, 2021, 2020 and 2019, respectively. Receivables from these franchisees totaled $19.7 million and $20.4 million at December 31, 2021 and 2020, 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. The components of cash and cash equivalents were as follows: December 31, 2021 2020 (In millions) Money market funds $ 30.0 $ 175.0 IHOP advertising funds and gift card programs 101.5 71.6 Other depository accounts 229.9 136.8 Total cash and cash equivalents $ 361.4 $ 383.4 Restricted Cash Current Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. The components of current restricted cash were as follows: December 31, 2021 2020 (In millions) Securitized debt reserves $ 29.9 $ 27.0 Applebee's advertising funds 17.5 12.8 Other 0.1 0.1 Total current restricted cash $ 47.5 $ 39.9 Non-current Non-current restricted cash of $16.4 million and $32.8 million at December 31, 2021 and 2020, respectively, represents interest reserves set aside for the duration of the securitized debt. The required reserve is approximately one quarter's interest payment on the Company's securitized debt. The Company voluntarily increased the amount held in non-current cash to twice the required amount during the year ended December 31, 2020 and reduced the reserve back to the minimum amount during the year ended December 31, 2021. 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 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 Equipment and fixtures Three Internal-use software Three 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 analysis is performed at the restaurant level for indicators of impairment. The Company tests for impairment using current and historical operating results and cash flows as well as 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. Continuing losses associated with an asset are 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 Long-lived Tangible Asset 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, current and future income tax rates, the competitive environment, fluctuations in the market value of the Company's common stock, absolute and relative to peers, 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, company restaurant operations, rental operations and financing 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 Revenues 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 revenues 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 revenues 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 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. Company Restaurant Revenues Company restaurant revenues comprise 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 Revenues Rental operations revenues include revenues from operating leases and interest income from direct financing leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing Revenues Financing operations revenues consist 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. Interest income is recorded as earned. Gift Card 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 estimated to be redeemable at company-operated restaurants for the years ended December 31, 2021 and 2020 was $0.3 million in each year. Breakage revenue was not recorded for the year ended December 31, 2019 as the Company did not have sufficient history from operating the restaurants on which to base an estimate for breakage. Allowance for Credit Losses The allowance for credit losses 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 losses, current conditions, and reasonable and supportable forecasts used in assessing 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 credit losses. 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. See Note 4, Current Expected Credit Losses , of the Notes to the Consolidated Financial Statements for additional information. 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. 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 estimate an 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 (as lessee) or receipts (as lessor) 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 lease receivables 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 expense reflected in the Consolidated Statements of Comprehensive Income (Loss) includes contributions to the national advertising fund made by Applebee's and IHOP, local marketing advertising costs incurred by company-operated restaurants, and certain advertising costs incurred by the Company to benefit future franchise operations. Costs of advertising typically are expensed either as incurred or the first time the advertising takes place. 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. Advertising expense included in company restaurant operations for the years ended December 31, 2021, 2020 and 2019 was $6.8 million, $5.2 million and $6.1 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 and 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, 2021 2020 (In millions) Face value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,287.0 $ 1,296.8 Fair value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,312.9 $ 1,259.5 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 is taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries and recognizes the current tax on GILTI as an expense in the period the tax is incurred. The Company includes the current tax impact of GILTI in our effective tax rate. 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 (loss) 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 (loss) 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, 2021, 2020 and 2019, 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 dividend declaration. Dividends declared in excess of retained earnings are recorded as a reductio |
Revenue Disclosures
Revenue Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | Revenue DisclosuresThe following table disaggregates our franchise revenues by major type for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 (In thousands) Franchise Revenues: Royalties $ 292,372 $ 215,214 $ 302,169 Advertising fees 274,790 201,494 283,015 Pancake and waffle dry mix sales and other 51,250 38,936 53,973 Franchise and development fees 13,524 13,809 12,029 Total franchise revenues $ 631,936 $ 469,453 $ 651,186 Accounts and other receivables related to franchise revenues as of December 31, 2021 and 2020 were $66 million (net of allowance of $1.1 million) and $76.3 million (net of allowance of $11.4 million), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's deferred franchise revenue during the year ended December 31, 2021 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2020 59,919 Recognized as revenue during the year ended December 31, 2021 (12,101) Fees deferred during the year ended December 31, 2021 5,528 Balance at December 31, 2021 $ 53,346 The balance of deferred franchise revenue as of December 31, 2021 is expected to be recognized as follows: (In thousands) 2022 $ 7,246 2023 6,800 2024 6,191 2025 5,416 2026 4,597 Thereafter 23,096 Total $ 53,346 |
Current Expected Credit Losses
Current Expected Credit Losses ("CECL") | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses ("CECL") | Current Expected Credit Losses ( “ CECL ” ) The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. In applying the CECL methodology, the Company developed its estimated loss reserves in the following manner. The Company continued to record specific reserves against account balances of franchisees deemed “at-risk” when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed “at-risk,” an allowance is recorded based on expected loss rates derived pursuant to the following CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable. Historical Losses Historical loss rates over a five-year span were calculated for financial assets with common risk characteristics. The Company determined historical loss rate data for each franchise brand concept was more relevant than a single blended rate. Historical losses were determined based on the average charge-off method. Historical loss rates are further adjusted by factors related to current conditions and forecasts of future economic conditions. Current Conditions The Company identified three metrics that it believes provide the most relevant reflection of the current risks inherent in the Company’s franchisee-based restaurant business, as follows: (1) delinquency status, (2) system-wide same-restaurant sales, and (3) restaurant unit-level economics. The current conditions adjustment factor was adjusted to account for the impact of the COVID-19 pandemic. Reasonable and Supportable Forecasts The third component in the CECL methodology involves consideration of macroeconomic conditions that can impact the estimate of expected credit losses in the future. The Company has not developed an internal methodology in this regard; rather, the Company utilizes existing, publicly accessible sources of economic data, primarily forecasts of overall unemployment rate as well as consumer spending based on the personal consumption expenditure index. Reversion to History The Company has determined that reversion to history was not required since the remaining average lives of the Company’s financial assets are not exceedingly lengthy. The Company considers its portfolio segments to be the following: Accounts Receivable (Franchise-Related) Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising and other franchise-related fees. Gift Card Receivables Gift card receivables consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year end as a result of the December holiday season. Notes Receivable Notes receivable balances primarily relate to the conversion of certain Applebee's franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, a note receivable in connection with the sale of IHOP company restaurants in June 2017, and IHOP franchise fee and other notes. The notes are typically collateralized by the franchise. The notes have a term from one Equipment Leases Receivable Equipment leases receivable primarily relate to IHOP franchise development activity prior to 2003. IHOP provided the financing for the leasing of the equipment. Equipment lease contracts are collateralized by the equipment in the restaurant. Equipment lease contracts are due in equal weekly installments, and bear interest averaging 9.9% and 9.8% per annum at December 31, 2021 and 2020, respectively. The term of an equipment lease contract typically coincides with the term of the corresponding restaurant building lease. The weighted average remaining life of the Company’s equipment leases is 4.7 years as of December 31, 2021. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. Direct Financing Leases Receivable Direct financing lease receivables also primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, and then franchised the restaurant to a franchisee. IHOP provided the financing for leasing or subleasing the site. Direct financing leases at December 31, 2021, comprised 70 leases with a weighted average remaining life of 5.2 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees. Where applicable, building leases and equipment contracts contain cross-default provisions wherein a default under one constitutes a default under all. Distributor Receivables Receivables due from distributors are related to the sale of IHOP’s proprietary pancake and waffle dry mix to franchisees through the Company’s network of suppliers and distributors and are included as part of Other receivables. Total receivables balances at December 31, 2021 and 2020 were as follows: Receivables 2021 2020 (In millions) Accounts receivable $ 63.6 $ 85.7 Gift card receivables 33.4 22.5 Notes receivable 19.7 18.6 Financing receivables: Equipment leases receivable 33.4 43.9 Direct financing leases receivable 16.7 22.7 Other 7.6 6.1 174.4 199.5 Less: allowance for doubtful accounts and notes receivable (11.9) (23.1) 162.5 176.4 Less: current portion (120.0) (121.9) Long-term receivables $ 42.5 $ 54.5 Changes in the allowance for credit losses during the years ended December 31, 2021 and 2020 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Balance, December 31, 2019 $ 0.7 $ 2.4 $ 8.2 $ — $ — $ — $ 11.3 Increase due to CECL adoption 0.3 — 0.1 0.1 0.1 0.1 0.7 Bad debt expense for the year ended December 31, 2020 5.0 2.5 0.5 1.2 3.4 0.2 12.8 Advertising provision adjustment 5.4 (0.7) (1.2) — — — 3.5 Write-offs (0.2) (0.6) (2.3) (0.9) (1.2) — (5.2) Recoveries 0.0 — — 0.0 — — — Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense for the year ended December 31, 2021 (8.2) 1.4 1.1 0.1 0.8 (0.1) (4.9) Advertising provision adjustment (1.8) (0.3) 0.2 — — — (1.9) Write-offs (0.2) (0.9) — (0.5) (3.0) — (4.6) Recoveries 0.0 — — 0.2 — — 0.2 Balance, December 31, 2021 $ 1.0 $ 3.8 $ 6.6 $ 0.2 $ 0.1 $ 0.2 $ 11.9 (1) Primarily distributor receivables, gift card receivables and credit card receivables The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at December 31, 2021 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Current $ 5.0 $ 13.3 $ 16.7 $ 33.4 $ 1.8 $ 70.2 30-59 days 0.0 — — — — 0.0 60-89 days 0.0 — — — — — 90-119 days — — — — — — 120+ days 1.4 — — — — 1.4 Total $ 6.4 $ 13.3 $ 16.7 $ 33.4 $ 1.8 $ 71.6 (1) Primarily c redit card receivables The year of origination of the Company's financing receivables is as follows: Notes receivable, short and long-term Lease Receivables Equipment Receivables Total (In millions) 2021 $ 13.1 $ 2.7 $ — $ 15.8 2020 0.6 1.4 — 2.0 2019 0.2 0.8 — 1.0 2018 — — — — 2017 5.7 — — 5.7 Prior 0.1 11.8 33.4 45.3 Total $ 19.7 $ 16.7 $ 33.4 $ 69.8 The Company does not place its financing receivables in non-accrual status. The following table summarizes the activity in the allowance for doubtful accounts and notes receivable for the year ended December 31, 2019, prior to the adoption of CECL: Allowance for Doubtful Accounts (In millions) Balance at December 31, 2018 $ 17.2 Provision (0.4) Write-offs (5.0) Recoveries (0.5) Balance at December 31, 2019 $ 11.3 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment by category at December 31, 2021 and 2020 were as follows: 2021 2020 (In millions) Leaseholds and improvements $ 221.1 $ 221.7 Properties under finance leases 94.6 95.2 Equipment and fixtures 52.5 51.3 Buildings and improvements 54.2 55.4 Land 51.3 52.1 Internal-use software 55.7 47.8 Construction in progress 5.5 5.0 Property and equipment, gross 534.9 528.5 Less: accumulated depreciation and amortization (355.5) (340.5) Property and equipment, net $ 179.4 $ 188.0 The Company recorded depreciation expense on property and equipment of $29.2 million, $31.9 million and $30.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Total (In millions) 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 Impairment loss (92.2) — — (92.2) Balance at December 31, 2020 236.2 4.6 10.8 251.6 Balance at December 31, 2021 $ 236.2 $ 4.6 $ 10.8 $ 251.6 Gross and net carrying amounts of goodwill at December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net (In millions) Applebee's Franchise Unit $ 686.7 $ (450.5) $ 236.2 $ 686.7 $ (450.5) $ 236.2 Applebee's Company Unit 4.6 — 4.6 4.6 — 4.6 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Total $ 702.1 $ (450.5) $ 251.6 $ 702.1 $ (450.5) $ 251.6 The Company assesses goodwill for impairment in accordance with its policy described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies . The Company evaluates its goodwill and the indefinite-lived Applebee's tradename for impairment annually in the fourth quarter of each year or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. Definite-lived intangible assets and long-lived tangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted future cash flows. 2021 Assessment In the fourth quarter of 2021, the Company performed qualitative assessments of its goodwill in accordance with its accounting policies. As result of the qualitative assessment, the Company concluded it was more likely than not that the fair values of each unit exceeded the respective carrying amounts and therefore, a quantitative test of impairment was not necessary. 2020 Assessment Because of the risks and uncertainties associated with the COVID-19 pandemic, the Company performed an interim assessment to determine whether the impact of COVID-19 indicated a potential impairment to its goodwill and intangible assets. In the second quarter of 2020, the Company noted that its common stock had recovered less of its early March 2020 (pre-pandemic) market value than the overall U.S. stock market had recovered. The Company also was able to assess several months of data as to the impact of the COVID-19 pandemic on its operations and, in turn, assess the impact that might have on the risk premium incorporated into its discount rate. Based on these developments, the Company determined that an interim quantitative test for impairment of the goodwill of the Applebee's Franchise and Company units should be performed as of May 24, 2020. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The fair value technique used in this instance is classified as Level 3, where unobservable inputs are used when little or no market data is available. In performing the quantitative test for impairment of goodwill, the Company used the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method to determine the fair value of goodwill and intangible assets. Significant assumptions made by management in estimating fair value under the discounted cash flow model include future trends in sales, operating expenses, overhead expenses, depreciation, 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. As a result of performing the quantitative test of impairment, the Company recognized an impairment loss of $92.2 million in 2020 to the goodwill of the Applebee's Franchise unit. The majority of the impairment was due to an increase in the assessed risk premium incorporated into the discount rate assumption. There was no impairment of the Applebee's Company unit. 2019 Assessment In the fourth quarter of 2019, the Company performed qualitative assessments of its goodwill in accordance with its accounting policies. As result of the qualitative test, the Company concluded it was more likely than not that the fair values of each unit exceeded the respective carrying amounts and therefore, a quantitative test of impairment was not necessary. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
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 amounts for the years ended December 31, 2021, 2020 and 2019 are as follows: Not Subject to Amortization Subject to Amortization Tradename Other Franchising Reacquired Franchise Rights Favorable Leaseholds Total (In millions) Balance at December 31, 2018 $ 479.0 $ 2.7 $ 89.0 $ 11.5 $ 3.6 $ 585.9 Amortization expense — — (10.0) (1.7) (0.1) (11.7) Additions — 0.5 — — 0.5 1.0 Balance at December 31, 2019 479.0 3.2 79.0 9.8 4.1 575.1 Impairment (11.0) — — (3.3) (0.8) (15.1) Amortization expense — — (10.0) (0.8) (0.1) (10.9) Additions — 0.6 — — — 0.5 Balance at December 31, 2020 468.0 3.8 69.0 5.7 3.2 549.7 Amortization expense — — (10.0) (0.6) (0.1) (10.7) Additions — 0.4 — — — 0.4 Balance at December 31, 2021 $ 468.0 $ 4.2 $ 59.0 $ 5.1 $ 3.1 $ 539.4 In December 2018, the Company acquired 69 Applebee's restaurants. In its allocation of the purchase price, the Company recorded $11.6 million of reacquired franchise rights as an intangible asset. Additions other intangibles for the years ended December 31, 2021, 2020 and 2019 are individually insignificant. Impairments in 2020 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 and reacquired franchise rights in the second quarter of 2020. 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 the quantitative test of impairment, the Company recognized an impairment of $11.0 million to Applebee's tradename. The majority of the impairment was due to an increase in the assessed risk premium incorporated into the discount rate assumption. In addition, the Company determined that the carrying amounts of reacquired franchise rights and favorable leaseholds exceeded the estimated fair value by $3.3 million and $0.8 million, respectively, and recorded impairments to those intangible assets. Annual amortization expense for the next five fiscal years is estimated to be approximately $10.7 million per year. Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net (In millions) Franchising rights $ 200.0 $ (141.0) $ 59.0 $ 200.0 $ (131.0) $ 69.0 Reacquired franchise rights 8.3 (3.2) 5.1 8.3 (2.6) 5.7 Favorable leaseholds 3.4 (0.3) 3.1 $ 3.4 $ (0.2) 3.2 Total $ 211.7 $ (144.5) $ 67.2 $ 211.7 $ (133.7) $ 78.0 In the fourth quarter of fiscal 2021 and 2019, the Company performed a qualitative assessment of the Applebee's tradename and concluded the fair value exceeded the carrying amount. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at December 31, 2021 and 2020 consists of the following components: 2021 2020 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 693.0 $ 698.3 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 594.0 598.5 Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2021 — 220.0 Debt issuance costs (7.4) (11.8) Long-term debt, net of debt issuance costs 1,279.6 1,505.0 Current portion of long-term debt — (13.0) Long-term debt $ 1,279.6 $ 1,492.0 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 “Credit Facility”), on substantially the same terms as the 2018 Class A-1 Notes in order to conform the term of the Credit Facility to the anticipated repayment dates for the 2019 Class A-2 Notes. The Credit Facility 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. 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 5.25x. Exceeding the leverage ratio of 5.25x does not violate any covenant related to the New Notes. As of December 31, 2021 the Company's leverage ratio was 3.86x. Therefore, quarterly principal payments are not required. During 2021, the Company's leverage ratio exceeded 5.25x until the quarterly payment period ended September 30, 2021. Accordingly, the Company made three principal payments totaling $9.75 million in 2021. 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, 2021, the make-whole premium associated with voluntary prepayment of the Class A-2-I Notes was approximately $10 million; this amount declines each quarter to zero in June 2022. As of December 31, 2021, the make-whole premium associated with voluntary prepayment of the Class A-2-II Notes was approximately $39 million; this amount declines 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, 2021, 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 the Credit Facility that allows for drawings up to $225 million of variable funding notes and the issuance of letters of credit. The 2019 Class A-1Notes were issued under the Indenture. Drawings and certain additional terms related to the Credit Facility 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 Guarantors”), 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 Credit Facility is governed, in part, by the Purchase Agreement and by certain generally applicable terms contained in the Indenture. The applicable interest rate under the Credit Facility 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 Credit Facility. There is a fee of 50 basis points on any unused portion of the Credit 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 Credit Facility 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. 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 Co-Issuers and the Guarantors (collectively, the “Securitization Entities”), the Company, Applebee’s Services, Inc., International House of Pancakes, LLC and the Trustee, the Company will act as the manager with respect to substantially all of the assets of the Securitization Entities (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 Company, as Manager, voluntarily began waiving its receipt of the weekly management fee in April 2020 and resumed its receiving the weekly management fee in July 2020. 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. In general, the DSCR ratio is Net Cash Flow (as defined in the Indenture) for the four quarters preceding the calculation date divided by the total debt service payments (as defined in the Indenture) of the preceding four quarters. The complete definitions of the DSCR and all calculation elements are contained in the Indenture. 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 Indenture) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. In a Manager Termination Event, the Company may be replaced as manager of the assets securitized under the Indenture. In a Default Event, the outstanding principal amount and any accrued but unpaid interest can be called to become immediately due and payable. Key DSCRs are as follows: • DSCR less than 1.75x - Cash Flow Sweeping Event • DSCR less than 1.20x - Rapid Amortization Event • Interest-only DSCR less than 1.20x - Manager Termination Event • Interest-only DSCR less than 1.10x - Default Event The Company's DSCR for the reporting period ended December 31, 2021 was approximately 4.7x. Use of Credit Facilities In March 2020, the Co-Issuers drew down a total of $220.0 million of the amount then available under the Credit Facility. The entire $220.0 million was repaid on March 5, 2021, and there have been no new borrowings since that date. The maximum amount of borrowings from the Credit Facility outstanding during the year ended December 31, 2021 was $220.0 million. At December 31, 2021, there were no borrowings outstanding under the Credit Facility. It is anticipated that any principal and interest on the Credit Facility outstanding will be repaid in full on or prior to the quarterly payment date in June 2024, subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. The current interest rate for borrowings under the Credit Facility is the three-month LIBOR rate plus 2.15% for 60% of the advances and the commercial paper funding rate of our conduit investor plus 2.15% for 40% of the advances. The weighted average interest rate on Credit Facility borrowings for the period outstanding during the year ended December 31, 2021 was 2.42%. At December 31, 2021, $3.3 million was pledged against the Credit Facility for outstanding letters of credit, leaving $221.7 million of the Credit Facility available for borrowing. The letters of credit are used primarily to satisfy insurance-related collateral requirements. Loss on Extinguishment of Debt In connection with the repayment of the 2014 Class A-2 Notes, during the year ended December 31, 2019, 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 at the time of repayment. Prior to the extinguishment on June 5, 2019, amortization costs of $1.4 million associated with the 2014 Class A-2 Notes were included in interest expense for the year ended December 31, 2019. 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 $2.2 million, $2.1 million and $1.2 million included in interest expense for the years ended December 31, 2021, 2020 and 2019, respectively. Unamortized debt issuance costs of $7.4 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 Credit Facility in 2019. 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 Credit Facility. Amortization costs of $0.6 million, $0.6 million and $0.8 million were included in interest expense for the years ended December 31, 2021, 2020 and 2019, respectively. Total unamortized debt issuance costs of $1.5 million related to the Credit Facility and prior credit facility are classified as other long-term assets because there are no borrowings outstanding against the Credit Facility at December 31, 2021. At December 31, 2020, unamortized debt issuance costs of $2.2 million were reported as a direct reduction of the Class A-1 Notes in the Consolidated Balance Sheets. Maturities of Long-term Debt • The anticipated repayment date of the Class A-2-I Notes is June 2024. • The anticipated repayment date of the Class A-2-II Notes is June 2026. |
Financing Obligations
Financing Obligations | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, the portion of the original Sale-Leaseback Transaction related to 158 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 $284.2 million. As of December 31, 2021, 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) 2022 $ 4.5 2023 4.4 2024 5.0 2025 5.0 2026 5.4 Thereafter 29.4 Total minimum lease payments 53.7 Less: interest (20.9) Total financing obligations 32.8 Less: current portion (1) (0.8) Long-term financing obligations $ 32.0 ______________________________________________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. |
Lease Disclosures
Lease Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
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 540 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 55 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 Leawood, Kansas 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 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 years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 4.6 $ 5.0 $ 5.3 Interest on lease liabilities 5.4 6.6 7.7 Operating lease cost 98.7 109.8 106.2 Variable lease cost 7.0 0.8 2.7 Short-term lease cost 0.1 0.0 0.0 Sublease income (104.6) (96.8) (110.9) Lease cost $ 11.2 $ 25.4 $ 11.0 Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 The weighted average remaining lease term as of December 31, 2021 was 9.5 years for finance leases and 6.8 years for operating leases. The weighted average discount rate as of December 31, 2021 was 10.1% for finance leases and 5.5% for operating leases. During the years ended December 31, 2021, 2020 and 2019, the Company made the following cash payments for leases: Year Ended December 31, 2021 2020 2019 (In millions) Principal payments on finance lease obligations $ 10.2 $ 12.5 $ 13.6 Interest payments on finance lease obligations $ 5.4 $ 6.6 $ 7.7 Payments on operating leases $ 91.7 $ 101.1 $ 91.9 Variable lease payments $ 6.2 $ 0.7 $ 2.5 The Company's income from operating leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Minimum lease payments $ 96.0 $ 97.2 $ 102.8 Variable lease income 15.3 5.2 11.5 Total operating lease income $ 111.3 $ 102.4 $ 114.3 Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2021 were as follows: (In millions) 2022 $ 102.3 2023 98.1 2024 89.9 2025 76.9 2026 62.4 Thereafter 131.1 Total minimum rents receivable $ 560.7 The Company's income from direct financing leases at December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Interest income $ 2.1 $ 3.4 $ 5.0 Variable lease income 0.5 0.3 1.3 Total financing lease income $ 2.6 $ 3.7 $ 6.3 Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2021 were as follows: (In millions) 2022 $ 7.8 2023 3.9 2024 1.8 2025 1.0 2026 0.9 Thereafter 4.4 Total minimum rents receivable 19.8 Less: unearned income (3.1) Total direct financing leases receivable 16.7 Less: current portion (6.6) Long-term direct financing leases receivable $ 10.1 |
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 540 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 55 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 Leawood, Kansas 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 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 years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 4.6 $ 5.0 $ 5.3 Interest on lease liabilities 5.4 6.6 7.7 Operating lease cost 98.7 109.8 106.2 Variable lease cost 7.0 0.8 2.7 Short-term lease cost 0.1 0.0 0.0 Sublease income (104.6) (96.8) (110.9) Lease cost $ 11.2 $ 25.4 $ 11.0 Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 The weighted average remaining lease term as of December 31, 2021 was 9.5 years for finance leases and 6.8 years for operating leases. The weighted average discount rate as of December 31, 2021 was 10.1% for finance leases and 5.5% for operating leases. During the years ended December 31, 2021, 2020 and 2019, the Company made the following cash payments for leases: Year Ended December 31, 2021 2020 2019 (In millions) Principal payments on finance lease obligations $ 10.2 $ 12.5 $ 13.6 Interest payments on finance lease obligations $ 5.4 $ 6.6 $ 7.7 Payments on operating leases $ 91.7 $ 101.1 $ 91.9 Variable lease payments $ 6.2 $ 0.7 $ 2.5 The Company's income from operating leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Minimum lease payments $ 96.0 $ 97.2 $ 102.8 Variable lease income 15.3 5.2 11.5 Total operating lease income $ 111.3 $ 102.4 $ 114.3 Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2021 were as follows: (In millions) 2022 $ 102.3 2023 98.1 2024 89.9 2025 76.9 2026 62.4 Thereafter 131.1 Total minimum rents receivable $ 560.7 The Company's income from direct financing leases at December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Interest income $ 2.1 $ 3.4 $ 5.0 Variable lease income 0.5 0.3 1.3 Total financing lease income $ 2.6 $ 3.7 $ 6.3 Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2021 were as follows: (In millions) 2022 $ 7.8 2023 3.9 2024 1.8 2025 1.0 2026 0.9 Thereafter 4.4 Total minimum rents receivable 19.8 Less: unearned income (3.1) Total direct financing leases receivable 16.7 Less: current portion (6.6) Long-term direct financing leases receivable $ 10.1 |
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 540 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 55 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 Leawood, Kansas 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 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 years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 4.6 $ 5.0 $ 5.3 Interest on lease liabilities 5.4 6.6 7.7 Operating lease cost 98.7 109.8 106.2 Variable lease cost 7.0 0.8 2.7 Short-term lease cost 0.1 0.0 0.0 Sublease income (104.6) (96.8) (110.9) Lease cost $ 11.2 $ 25.4 $ 11.0 Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 The weighted average remaining lease term as of December 31, 2021 was 9.5 years for finance leases and 6.8 years for operating leases. The weighted average discount rate as of December 31, 2021 was 10.1% for finance leases and 5.5% for operating leases. During the years ended December 31, 2021, 2020 and 2019, the Company made the following cash payments for leases: Year Ended December 31, 2021 2020 2019 (In millions) Principal payments on finance lease obligations $ 10.2 $ 12.5 $ 13.6 Interest payments on finance lease obligations $ 5.4 $ 6.6 $ 7.7 Payments on operating leases $ 91.7 $ 101.1 $ 91.9 Variable lease payments $ 6.2 $ 0.7 $ 2.5 The Company's income from operating leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Minimum lease payments $ 96.0 $ 97.2 $ 102.8 Variable lease income 15.3 5.2 11.5 Total operating lease income $ 111.3 $ 102.4 $ 114.3 Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2021 were as follows: (In millions) 2022 $ 102.3 2023 98.1 2024 89.9 2025 76.9 2026 62.4 Thereafter 131.1 Total minimum rents receivable $ 560.7 The Company's income from direct financing leases at December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Interest income $ 2.1 $ 3.4 $ 5.0 Variable lease income 0.5 0.3 1.3 Total financing lease income $ 2.6 $ 3.7 $ 6.3 Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2021 were as follows: (In millions) 2022 $ 7.8 2023 3.9 2024 1.8 2025 1.0 2026 0.9 Thereafter 4.4 Total minimum rents receivable 19.8 Less: unearned income (3.1) Total direct financing leases receivable 16.7 Less: current portion (6.6) Long-term direct financing leases receivable $ 10.1 |
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 540 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 55 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 Leawood, Kansas 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 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 years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 4.6 $ 5.0 $ 5.3 Interest on lease liabilities 5.4 6.6 7.7 Operating lease cost 98.7 109.8 106.2 Variable lease cost 7.0 0.8 2.7 Short-term lease cost 0.1 0.0 0.0 Sublease income (104.6) (96.8) (110.9) Lease cost $ 11.2 $ 25.4 $ 11.0 Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 The weighted average remaining lease term as of December 31, 2021 was 9.5 years for finance leases and 6.8 years for operating leases. The weighted average discount rate as of December 31, 2021 was 10.1% for finance leases and 5.5% for operating leases. During the years ended December 31, 2021, 2020 and 2019, the Company made the following cash payments for leases: Year Ended December 31, 2021 2020 2019 (In millions) Principal payments on finance lease obligations $ 10.2 $ 12.5 $ 13.6 Interest payments on finance lease obligations $ 5.4 $ 6.6 $ 7.7 Payments on operating leases $ 91.7 $ 101.1 $ 91.9 Variable lease payments $ 6.2 $ 0.7 $ 2.5 The Company's income from operating leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Minimum lease payments $ 96.0 $ 97.2 $ 102.8 Variable lease income 15.3 5.2 11.5 Total operating lease income $ 111.3 $ 102.4 $ 114.3 Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2021 were as follows: (In millions) 2022 $ 102.3 2023 98.1 2024 89.9 2025 76.9 2026 62.4 Thereafter 131.1 Total minimum rents receivable $ 560.7 The Company's income from direct financing leases at December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Interest income $ 2.1 $ 3.4 $ 5.0 Variable lease income 0.5 0.3 1.3 Total financing lease income $ 2.6 $ 3.7 $ 6.3 Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2021 were as follows: (In millions) 2022 $ 7.8 2023 3.9 2024 1.8 2025 1.0 2026 0.9 Thereafter 4.4 Total minimum rents receivable 19.8 Less: unearned income (3.1) Total direct financing leases receivable 16.7 Less: current portion (6.6) Long-term direct financing leases receivable $ 10.1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, the outstanding purchase commitments were $78.1 million, of which $62.7 million related to advertising commitments over the next twelve months. 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 $223.1 million and $245.6 million as of December 31, 2021 and 2020, respectively. These amounts represent the maximum potential liability of future payments under these leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2022 through 2048. Excluding unexercised option periods, the Company's potential liability for future payments under these leases as of December 31, 2021 was $49.2 million. 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, 2021. 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 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, 2021, the Company had approximately $3.3 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 2021 and are automatically renewed for an additional year if no cancellation notice is submitted. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2021 | |
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 years ended December 31, 2021, 2020 and 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, 2021 59,099 $ 4.5 Repurchased during the year ended December 31, 2020 459,899 $ 26.5 Repurchased during the year ended December 31, 2019 1,237,698 $ 103.3 Cumulative (life-of-program) repurchases 1,756,696 $ 134.3 Remaining dollar value of shares that may be repurchased n/a $ 65.7 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 On October 28, 2021, the Board of Directors declared a fourth quarter 2021 cash dividend of $0.40 per share of common stock, payable on January 7, 2022 to the stockholders of record as of the close of business on December 17, 2021. Dividends were not declared for the first, second and third quarters of 2021. During the fiscal years ended December 31, 2021, 2020 and 2019, the Company declared and paid dividends on common stock as follows: Year ended December 31, 2021 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Fourth quarter December 20, 2021 (2) 0.40 — — Total $ 0.40 $ — $ — Year ended December 31, 2020 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Payment of prior year declaration (3) January 10, 2020 — $ 0.69 $ 11.7 First quarter February 20, 2020 April 3, 2020 $ 0.76 0.76 12.7 Total $ 0.76 $ 1.45 $ 24.4 Year ended December 31, 2019 Payment of prior year declaration (4) 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 (3) 0.69 — — Total $ 2.76 $ 2.70 $ 47.9 (1) Includes dividend equivalents paid on restricted stock units (2) The fourth quarter 2021 dividend of $6.9 million was paid on January 7, 2022. (3) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. (4) The fourth quarter 2018 dividend of $11.4 million was paid on January 4, 2019. 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. All dividends declared during the fiscal years ended December 31, 2021, 2020 and 2019 were declared from retained earnings. Treasury Stock |
Closure and Long-lived Tangible
Closure and Long-lived Tangible Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Closure and Long-lived Tangible Asset Impairment Charges | Closure and Long-lived Tangible Asset Impairment Charges Closure and long-lived tangible asset impairment charges for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, December 31, 2021 2020 2019 (In millions) Closure charges $ 3.7 $ 3.0 $ 1.5 Long-lived tangible asset impairment 1.7 22.3 — Total closure and long-lived tangible asset impairment charges $ 5.4 $ 25.3 $ 1.5 Closure Charges The closure charges of $3.7 million for the year ended December 31, 2021 comprised $2.1 million related to 20 IHOP restaurants closed in 2021 and $1.6 million for revisions to existing closure reserves, including accretion, primarily for 28 IHOP restaurants closed prior to December 31, 2020. Approximately $1.6 million of closure charges for the year ended December 31, 2020 related to seven IHOP restaurants closed during 2020, with the remainder primarily related to adjustments to the reserve for IHOP and Applebee's restaurants closed prior to 2020. 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. Long-lived Tangible Asset Impairment The long-lived asset impairment of $1.7 million for the year ended December 31, 2021 related to five IHOP franchisee-operated restaurants for which the carrying amount exceeded the future projected cash flows. The primary method of estimating fair value is based on a discounted cash flow analysis. The Company also considers factors such as the number of years the restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. For locations owned by the Company, current purchase offers, if any, or valuations from independent third party sources are utilized, if available. The analysis is performed at the restaurant level for indicators of permanent impairment. The impairment recorded represented the difference between the carrying value and the estimated fair value. The impairments primarily related to operating lease right-of-use assets. The long-lived asset impairment of $22.3 million for the year ended December 31, 2020 related to 29 Applebee's company-operated restaurants and 41 IHOP franchisee-operated restaurants for which the carrying amount exceeded the undiscounted cash flows. Approximately $15.1 million of the total impairment related to operating lease right-of-use assets, while $7.2 million related to impairments of land, building, leasehold improvements and finance leases. The impairments by individual property varied in amount, ranging from the largest single-property impairment of $1.3 million to less than $5,000. There were no long-lived tangible asset impairment charges for the year ended December 31, 2019. |
Stock-Based Incentive Plans
Stock-Based Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021. 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, 2021. The 2019 Plan, 2016 Plan and the 2011 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 either three years from the date of grant or in one-third increments over three years, as well as 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. See Note 13, Stockholders' Deficit , of Notes to the Consolidated Financial Statements, for treasury shares utilized related to equity grants during the years ended December 31. 2021, 2020 and 2019. 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, 2021 2020 2019 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 11.6 $ 12.6 $ 10.9 Liability classified awards expense 2.3 1.0 3.2 Total pretax stock-based compensation expense 13.9 13.6 14.1 Book income tax benefit (3.5) (3.4) (3.5) Total stock-based compensation expense, net of tax $ 10.4 $ 10.2 $ 10.6 As of December 31, 2021, total unrecognized compensation cost related to restricted stock and restricted stock units of $15.9 million and $2.9 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 1.5 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 following table summarizes the assumptions used in the Black-Scholes model for stock options granted in the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Risk free interest rate 0.5 % 1.2 % 2.5 % Weighted average historical volatility 67.7 % 30.5 % 30.3 % Dividend yield — % 3.5 % 2.8 % Expected years until exercise 4.5 4.6 4.7 Weighted average fair value of options granted $ 40.25 $ 17.53 $ 21.93 Stock option activity for the years ended December 31, 2021, 2020 and 2019 is summarized as follows: Number of Weighted Average Weighted Average Aggregate Intrinsic 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 Granted 167,969 87.17 Exercised (270,024) 76.01 Forfeited (45,247) 86.39 Expired (55,466) 107.78 Outstanding at December 31, 2020 1,014,670 64.16 Granted 95,891 75.28 Exercised (524,536) 48.79 Forfeited (59,468) 88.39 Expired (50,653) 98.61 Outstanding at December 31, 2021 475,904 $ 76.65 6.8 $ 3.5 Vested and Expected to Vest at December 31, 2021 462,179 $ 76.59 6.7 $ 3.5 Exercisable at December 31, 2021 296,959 $ 73.28 5.7 $ 3.0 The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $17.9 million, $4.3 million and $6.9 million, respectively. Cash received from options exercised under all stock-based payment arrangements for the years ended December 31, 2021, 2020 and 2019 was $25.3 million, $20.5 million and $12.0 million, respectively. The actual tax benefit realized for the tax deduction from option exercises under the stock-based payment arrangements totaled $4.5 million, $1.1 million and $1.8 million, respectively, for the years ended December 31, 2021, 2020 and 2019. 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, 2021, 2020 and 2019 is as follows: Shares of Restricted Stock Weighted Average Restricted Weighted Average 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 Granted 163,522 73.68 30,997 77.33 Released (95,211) 55.75 (33,234) 63.98 Forfeited (38,495) 85.03 — — Outstanding at December 31, 2020 254,331 76.50 355,570 28.01 Granted 141,264 83.24 68,998 63.04 Released (60,407) 66.90 (318,976) 23.19 Forfeited (58,577) 82.09 — — Outstanding at December 31, 2021 276,611 $ 80.85 105,592 $ 71.00 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 Outstanding at December 31, 2018 53,766 Granted 20,989 Released (462) Forfeited (10,441) Outstanding at December 31, 2019 63,852 Granted 2,658 Released (1,426) Forfeited (12,128) Outstanding at December 31, 2020 52,956 Granted — Released (38,916) Forfeited (1,241) Outstanding at December 31, 2021 12,799 For the years ended December 31, 2021, 2020 and 2019, $1.5 million, $0.3 million and, $1.6 million respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. At December 31, 2021 and 2020, liabilities of $0.9 million and $2.5 million, respectively, related to cash-settled restricted stock units were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets. Liability Classified Awards - Long-Term Incentive Awards |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans401(k) Savings and Investment PlanEffective 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 $2.9 million, $2.8 million and $3.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Provision (benefit) for income taxes: (In millions) Current Federal $ 20.2 $ 11.0 $ 31.2 State 4.6 3.1 6.5 Foreign 1.4 1.3 1.9 26.2 15.4 39.6 Deferred Federal (2.3) (17.3) (3.8) State 0.2 (2.7) (1.7) (2.1) (20.0) (5.5) Provision (benefit) for income taxes $ 24.1 $ (4.6) $ 34.1 The provision (benefit) for income taxes differs from the expected federal income tax rates as follows: Year Ended December 31, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Non-deductibility of goodwill impairment — (17.9) — Non-deductibility of officer's compensation 2.2 (0.9) 1.0 State and other taxes, net of federal tax benefit 3.1 1.2 2.8 Excess tax deficiencies or benefits (7.1) 0.1 (0.6) Change in unrecognized tax benefits (0.1) 2.0 1.8 Change in valuation allowance 0.5 (1.5) 0.5 Changes in tax rates and state tax laws 0.2 (0.4) (0.5) General business credits (0.9) 0.8 (1.3) Other 0.8 (0.2) (0.1) Effective tax rate 19.7 % 4.2 % 24.6 % The 2021 effective tax rate of 19.7% applied to pretax book income was different than the statutory Federal income tax rate of 21% primarily due to the one-time recognition of excess tax benefits on stock-based compensation, offset by non-deductibility of executive compensation and state and local income taxes. The 2020 effective tax rate of 4.2% applied to pretax book loss was significantly different than the statutory Federal income tax rate of 21% primarily because of the $92.2 million impairment of goodwill incurred, which was not deductible for income tax purposes and therefore had no associated tax benefit. The 2019 effective tax rate of 24.6% applied to pretax book income was higher than the statutory Federal tax rate of 21% primarily due to tax expense associated with unrecognized tax benefits and state and local income taxes, offset by the recognized benefit from general business credits. 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. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2017 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) at December 31, 2021 and 2020 consisted of the following components: 2021 2020 (In millions) Lease liabilities $ 112.9 $ 119.6 Employee compensation 12.1 7.5 Revenue recognition 35.4 36.6 Other 8.4 10.2 Deferred tax assets 168.8 173.9 Valuation allowance (4.2) (3.0) Total deferred tax assets after valuation allowance 164.6 170.9 Recognition of franchise and equipment sales (8.2) (10.7) Capitalization and depreciation (2) (122.7) (123.2) Lease assets (108.6) (114.2) Other (1.3) (1.1) Deferred tax liabilities (240.8) (249.2) Net deferred tax liabilities $ (76.2) $ (78.3) (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, 2021, management determined it is more likely than not that the benefit from foreign tax credit carryforward and certain state deferred tax assets, including net operating loss carryforwards, from the Applebee’s company-operated restaurants will not be realized. In recognition of this risk, the Company provided a valuation allowance of $4.2 million. The Company had gross operating loss carryforwards for state tax purposes of $23.6 million and $13.3 million as of December 31, 2021 and 2020, respectively. The net operating loss carryforwards begin to expire in 2034 if not utilized. The total gross unrecognized tax benefit as of December 31, 2021 and 2020 was $1.9 million and $2.2 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 less than $0.1 million related to settlements with taxing authorities, statutes of limitations expirations and method changes. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2021 2020 2019 (In millions) Unrecognized tax benefit as of January 1 $ 2.2 $ 7.6 $ 5.2 Changes for tax positions of prior years 0.5 — 2.1 Increases for tax positions related to the current year 0.3 0.2 0.5 Decreases relating to settlements and lapsing of statutes of limitations (1.1) (5.6) (0.2) Unrecognized tax benefit as of December 31 $ 1.9 $ 2.2 $ 7.6 As of December 31, 2021, the accrued interest was $0.6 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2020, the accrued interest and penalties were $0.9 million and less than $0.1 million, respectively, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). On March 11, 2021, the American Rescue Plan Act of 2021 (“ARP Act”) was enacted in response to the COVID-19 pandemic. The ARP Act did not result in a material impact on our income tax provision for the year ended December 31, 2021. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (In thousands, except per share data) Numerator for basic and diluted income (loss) per common share: Net income (loss) $ 97,864 $ (103,994) $ 104,346 Less: Net income allocated to unvested participating restricted stock (2,295) (420) (3,532) Net income (loss) available to common stockholders - basic 95,569 (104,414) 100,814 Effect of unvested participating restricted stock 13 — 33 Numerator - income (loss) available to common shareholders - diluted $ 95,582 $ (104,414) $ 100,847 Denominator: Weighted average outstanding shares of common stock - basic 16,799 16,230 16,934 Effect of dilutive securities: Stock options 91 — 311 Weighted average outstanding shares of common stock - diluted 16,890 16,230 17,245 Net income (loss) per common share: Basic $ 5.69 $ (6.43) $ 5.95 Diluted $ 5.66 $ (6.43) $ 5.85 For the year ended December 31, 2020, diluted loss per common share was computed using the basic weighted average number of shares outstanding during the period as the 100,056 shares from common stock equivalents would have been antidilutive. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Information on segments and a reconciliation of gross profit to income (loss) before income taxes is as follows: Year Ended December 31, 2021 2020 2019 Revenues (In millions) Franchise operations $ 631.9 $ 469.5 $ 651.2 Rental operations 114.0 105.9 120.7 Company restaurants 146.0 108.1 131.2 Financing operations 4.3 5.8 7.1 Total $ 896.2 $ 689.3 $ 910.2 Gross profit (loss), by segment Franchise operations $ 336.0 $ 230.5 $ 338.4 Rental operations 26.1 16.4 29.9 Company restaurants 9.3 (3.5) 8.0 Financing operations 3.8 5.3 6.5 Total gross profit 375.2 248.7 382.8 Corporate and unallocated expenses, net (253.3) (357.3) (244.3) Income (loss) before income taxes $ 121.9 $ (108.6) $ 138.5 Interest expense Rental operations $ 4.9 $ 6.3 $ 7.7 Company restaurants 3.3 2.7 2.1 Corporate 63.3 66.9 60.4 Total $ 71.5 $ 75.9 $ 70.2 Depreciation and amortization Franchise operations $ 10.1 $ 10.1 $ 10.3 Rental operations 11.1 12.3 13.4 Company restaurants 7.0 7.0 6.4 Corporate 11.7 13.4 12.4 Total $ 39.9 $ 42.8 $ 42.5 Impairment of goodwill and intangible assets, closure and other impairment charges Franchise operations $ 1.7 $ 122.1 $ — Company restaurants 3.7 10.5 1.5 Total $ 5.4 $ 132.6 $ 1.5 Capital expenditures Franchise operations $ — $ — $ 0.6 Company restaurants 6.5 2.7 3.2 Corporate 10.3 8.2 15.6 Total $ 16.8 $ 10.9 $ 19.4 Goodwill Franchise operations $ 247.0 $ 247.0 $ 339.3 Company restaurants 4.6 4.6 4.6 Total $ 251.6 $ 251.6 $ 343.9 Total assets Franchise operations $ 991.0 $ 997.7 $ 1,116.2 Rental operations 426.5 451.5 503.8 Company restaurants 117.2 121.1 134.3 Financing operations 39.7 49.9 72.0 Corporate 425.0 454.7 223.2 Total $ 1,999.4 $ 2,074.9 $ 2,049.5 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 17, 2022, the Company's Board of Directors declared a first quarter 2022 cash dividend of $0.46 per share of common stock, payable on April 1, 2022 to the stockholders of record as of the close of business on March 21, 2022. On February 17, 2022, the Company's Board of Directors authorized a new share repurchase program, effective April 1, 2022, of up to $250 million (the “2022 Repurchase Program”). Approximately $66 million remained available for repurchases under the existing 2019 Share Repurchase Program as of December 31, 2021. In connection with the approval of the 2022 Repurchase Program, effective April 1, 2022, the 2019 Share Repurchase Program will terminate. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 PeriodsThe 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. |
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. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the outbreak of a novel strain of coronavirus, designated “COVID-19” and declared to be a pandemic in March 2020. The Company first began to experience impacts from COVID-19 in March 2020, as federal, state and local governments reacted to the public health crisis by encouraging and/or requiring social distancing, instituting shelter-in-place orders, and requiring, in varying degrees, restaurant dine-in limitations and other restrictions that largely limited the restaurants of the Company's franchisees and its company-operated restaurants to take-out and delivery sales during the initial stages of the pandemic. Subsequently, government-imposed dine-in restrictions have been relaxed, removed and reinstated as incidents of infection decrease or increase within the respective governmental jurisdictions. As of December 31, 2021, 99% of domestic Applebee's and IHOP restaurants and 32% of international Applebee's and IHOP restaurants were open and operating without government-mandated restriction. We cannot predict how long the pandemic will last, whether/when recurrences of the virus and its variants may arise, what restrictions on in-restaurant dining may be enacted or re-enacted, the availability and acceptance of vaccines, the timing and extent of customer re-engagement with the Company's brands and, in general, what the short- and long-term impact on consumer discretionary spending the COVID-19 pandemic might have on the Company and the restaurant industry as a whole, all of which are uncertain and cannot be predicted. As such, the extent to which the COVID-19 pandemic may continue to materially impact the Company's financial condition, liquidity, or results of operations remains highly uncertain. |
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. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe 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. |
Restricted Cash | Restricted Cash Current Current restricted cash primarily consisted of funds required to be held in trust in connection with the Company's securitized debt and funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. The components of current restricted cash were as follows: December 31, 2021 2020 (In millions) Securitized debt reserves $ 29.9 $ 27.0 Applebee's advertising funds 17.5 12.8 Other 0.1 0.1 Total current restricted cash $ 47.5 $ 39.9 Non-current Non-current restricted cash of $16.4 million and $32.8 million at December 31, 2021 and 2020, respectively, represents interest reserves set aside for the duration of the securitized debt. The required reserve is approximately one quarter's interest payment on the Company's securitized debt. The Company voluntarily increased the amount held in non-current cash to twice the required amount during the year ended December 31, 2020 and reduced the reserve back to the minimum amount during the year ended December 31, 2021. |
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 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 Equipment and fixtures Three Internal-use software Three 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 analysis is performed at the restaurant level for indicators of impairment. The Company tests for impairment using current and historical operating results and cash flows as well as 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. Continuing losses associated with an asset are an indicator of impairment. |
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, current and future income tax rates, the competitive environment, fluctuations in the market value of the Company's common stock, absolute and relative to peers, 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, company restaurant operations, rental operations and financing 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 Revenues 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 revenues 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 revenues 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 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. Company Restaurant Revenues Company restaurant revenues comprise 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 Revenues Rental operations revenues include revenues from operating leases and interest income from direct financing leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing Revenues Financing operations revenues consist 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. Interest income is recorded as earned. Gift Card |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses 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 losses, current conditions, and reasonable and supportable forecasts used in assessing 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 credit losses. 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. See Note 4, Current Expected Credit Losses , of the Notes to the Consolidated Financial Statements for additional information. |
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. 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 estimate an 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 (as lessee) or receipts (as lessor) 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 lease receivables 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 | AdvertisingAdvertising expense reflected in the Consolidated Statements of Comprehensive Income (Loss) includes contributions to the national advertising fund made by Applebee's and IHOP, local marketing advertising costs incurred by company-operated restaurants, and certain advertising costs incurred by the Company to benefit future franchise operations. Costs of advertising typically are expensed either as incurred or the first time the advertising takes place. |
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 and 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). The Company is taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries and recognizes the current tax on GILTI as an expense in the period the tax is incurred. The Company includes the current tax impact of GILTI in our effective tax rate. 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 | 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. |
Net Income (Loss) 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 (loss) 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 (loss) 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 | DividendsDividends 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 dividend declaration. 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, 2021, the franchise operations reportable segment consisted of 1,611 restaurants operated by Applebee's franchisees in the United States, two United States territories and 11 countries outside the United States and 1,751 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and seven 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 and IHOP franchisees and sales of equipment associated with refranchised IHOP restaurants. Financing expenses are the cost of restaurant equipment. Company Segment As of December 31, 2021, the Company operated 69 Applebee's restaurants that were acquired from a former franchisee in December 2018. 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 in the Current Fiscal Year In December 2019, the Financial Accounting Standards Board (“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 adopted the new guidance at the beginning of the first fiscal quarter of 2021. Adoption did not have any material effect on the consolidated financial statements. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2021 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 March 2020, with an update in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying current U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance can be adopted immediately and is applicable to contracts entered into on or before December 31, 2022. The Company is currently evaluating its contracts that reference LIBOR and the potential effects of adopting this new guidance. In July 2021, the FASB issued guidance which affect lessors with lease contracts that (i) have variable lease payments that do not depend on a reference index or a rate and (ii) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendments are effective for fiscal years beginning after December 15, 2021. The Company is currently evaluating lease contracts and the potential effects of adopting this new guidance. 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 when adoption is required in the future. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents were as follows: December 31, 2021 2020 (In millions) Money market funds $ 30.0 $ 175.0 IHOP advertising funds and gift card programs 101.5 71.6 Other depository accounts 229.9 136.8 Total cash and cash equivalents $ 361.4 $ 383.4 |
Restrictions on Cash and Cash Equivalents | The components of current restricted cash were as follows: December 31, 2021 2020 (In millions) Securitized debt reserves $ 29.9 $ 27.0 Applebee's advertising funds 17.5 12.8 Other 0.1 0.1 Total current restricted cash $ 47.5 $ 39.9 |
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 Equipment and fixtures Three Internal-use software Three 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, 2021 2020 (In millions) Face value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,287.0 $ 1,296.8 Fair value of Series 2019-1 Fixed Rate Senior Secured Notes $ 1,312.9 $ 1,259.5 |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our franchise revenues by major type for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 (In thousands) Franchise Revenues: Royalties $ 292,372 $ 215,214 $ 302,169 Advertising fees 274,790 201,494 283,015 Pancake and waffle dry mix sales and other 51,250 38,936 53,973 Franchise and development fees 13,524 13,809 12,029 Total franchise revenues $ 631,936 $ 469,453 $ 651,186 |
Schedule of Changes in Deferred Revenue | Changes in the Company's deferred franchise revenue during the year ended December 31, 2021 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2020 59,919 Recognized as revenue during the year ended December 31, 2021 (12,101) Fees deferred during the year ended December 31, 2021 5,528 Balance at December 31, 2021 $ 53,346 |
Schedule of Remaining Performance Obligations | The balance of deferred franchise revenue as of December 31, 2021 is expected to be recognized as follows: (In thousands) 2022 $ 7,246 2023 6,800 2024 6,191 2025 5,416 2026 4,597 Thereafter 23,096 Total $ 53,346 |
Current Expected Credit Losse_2
Current Expected Credit Losses ("CECL") (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Receivables and Allowance for Doubtful Accounts | Total receivables balances at December 31, 2021 and 2020 were as follows: Receivables 2021 2020 (In millions) Accounts receivable $ 63.6 $ 85.7 Gift card receivables 33.4 22.5 Notes receivable 19.7 18.6 Financing receivables: Equipment leases receivable 33.4 43.9 Direct financing leases receivable 16.7 22.7 Other 7.6 6.1 174.4 199.5 Less: allowance for doubtful accounts and notes receivable (11.9) (23.1) 162.5 176.4 Less: current portion (120.0) (121.9) Long-term receivables $ 42.5 $ 54.5 Allowance for Doubtful Accounts (In millions) Balance at December 31, 2018 $ 17.2 Provision (0.4) Write-offs (5.0) Recoveries (0.5) Balance at December 31, 2019 $ 11.3 |
Financing Receivable, Allowance for Credit Loss | Changes in the allowance for credit losses during the years ended December 31, 2021 and 2020 were as follows: Accounts Receivable Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Balance, December 31, 2019 $ 0.7 $ 2.4 $ 8.2 $ — $ — $ — $ 11.3 Increase due to CECL adoption 0.3 — 0.1 0.1 0.1 0.1 0.7 Bad debt expense for the year ended December 31, 2020 5.0 2.5 0.5 1.2 3.4 0.2 12.8 Advertising provision adjustment 5.4 (0.7) (1.2) — — — 3.5 Write-offs (0.2) (0.6) (2.3) (0.9) (1.2) — (5.2) Recoveries 0.0 — — 0.0 — — — Balance, December 31, 2020 $ 11.2 $ 3.6 $ 5.3 $ 0.4 $ 2.3 $ 0.3 $ 23.1 Bad debt (credit) expense for the year ended December 31, 2021 (8.2) 1.4 1.1 0.1 0.8 (0.1) (4.9) Advertising provision adjustment (1.8) (0.3) 0.2 — — — (1.9) Write-offs (0.2) (0.9) — (0.5) (3.0) — (4.6) Recoveries 0.0 — — 0.2 — — 0.2 Balance, December 31, 2021 $ 1.0 $ 3.8 $ 6.6 $ 0.2 $ 0.1 $ 0.2 $ 11.9 (1) Primarily distributor receivables, gift card receivables and credit card receivables |
Financing Receivable, Past Due | The Company's primary credit quality indicator for all portfolio segments is delinquency. The delinquency status of receivables (other than accounts receivable, gift card receivables and distributor receivables) at December 31, 2021 was as follows: Notes receivable, short-term Notes receivable, long-term Lease Receivables Equipment Receivables Other (1) Total (In millions) Current $ 5.0 $ 13.3 $ 16.7 $ 33.4 $ 1.8 $ 70.2 30-59 days 0.0 — — — — 0.0 60-89 days 0.0 — — — — — 90-119 days — — — — — — 120+ days 1.4 — — — — 1.4 Total $ 6.4 $ 13.3 $ 16.7 $ 33.4 $ 1.8 $ 71.6 (1) Primarily c redit card receivables |
Financing Receivable Credit Quality Indicators | The year of origination of the Company's financing receivables is as follows: Notes receivable, short and long-term Lease Receivables Equipment Receivables Total (In millions) 2021 $ 13.1 $ 2.7 $ — $ 15.8 2020 0.6 1.4 — 2.0 2019 0.2 0.8 — 1.0 2018 — — — — 2017 5.7 — — 5.7 Prior 0.1 11.8 33.4 45.3 Total $ 19.7 $ 16.7 $ 33.4 $ 69.8 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment by category at December 31, 2021 and 2020 were as follows: 2021 2020 (In millions) Leaseholds and improvements $ 221.1 $ 221.7 Properties under finance leases 94.6 95.2 Equipment and fixtures 52.5 51.3 Buildings and improvements 54.2 55.4 Land 51.3 52.1 Internal-use software 55.7 47.8 Construction in progress 5.5 5.0 Property and equipment, gross 534.9 528.5 Less: accumulated depreciation and amortization (355.5) (340.5) Property and equipment, net $ 179.4 $ 188.0 |
Goodwill - (Tables)
Goodwill - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Total (In millions) 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 Impairment loss (92.2) — — (92.2) Balance at December 31, 2020 236.2 4.6 10.8 251.6 Balance at December 31, 2021 $ 236.2 $ 4.6 $ 10.8 $ 251.6 Gross and net carrying amounts of goodwill at December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net (In millions) Applebee's Franchise Unit $ 686.7 $ (450.5) $ 236.2 $ 686.7 $ (450.5) $ 236.2 Applebee's Company Unit 4.6 — 4.6 4.6 — 4.6 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Total $ 702.1 $ (450.5) $ 251.6 $ 702.1 $ (450.5) $ 251.6 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets Roll Forward | Changes in the carrying amounts for the years ended December 31, 2021, 2020 and 2019 are as follows: Not Subject to Amortization Subject to Amortization Tradename Other Franchising Reacquired Franchise Rights Favorable Leaseholds Total (In millions) Balance at December 31, 2018 $ 479.0 $ 2.7 $ 89.0 $ 11.5 $ 3.6 $ 585.9 Amortization expense — — (10.0) (1.7) (0.1) (11.7) Additions — 0.5 — — 0.5 1.0 Balance at December 31, 2019 479.0 3.2 79.0 9.8 4.1 575.1 Impairment (11.0) — — (3.3) (0.8) (15.1) Amortization expense — — (10.0) (0.8) (0.1) (10.9) Additions — 0.6 — — — 0.5 Balance at December 31, 2020 468.0 3.8 69.0 5.7 3.2 549.7 Amortization expense — — (10.0) (0.6) (0.1) (10.7) Additions — 0.4 — — — 0.4 Balance at December 31, 2021 $ 468.0 $ 4.2 $ 59.0 $ 5.1 $ 3.1 $ 539.4 |
Schedule of Finite-Lived Intangible Assets by Major Class | Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net (In millions) Franchising rights $ 200.0 $ (141.0) $ 59.0 $ 200.0 $ (131.0) $ 69.0 Reacquired franchise rights 8.3 (3.2) 5.1 8.3 (2.6) 5.7 Favorable leaseholds 3.4 (0.3) 3.1 $ 3.4 $ (0.2) 3.2 Total $ 211.7 $ (144.5) $ 67.2 $ 211.7 $ (133.7) $ 78.0 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Components | Long-term debt at December 31, 2021 and 2020 consists of the following components: 2021 2020 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 693.0 $ 698.3 Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 594.0 598.5 Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2021 — 220.0 Debt issuance costs (7.4) (11.8) Long-term debt, net of debt issuance costs 1,279.6 1,505.0 Current portion of long-term debt — (13.0) Long-term debt $ 1,279.6 $ 1,492.0 |
Financing Obligations (Tables)
Financing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Finance Lease Liability Future Maturity | As of December 31, 2021, 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) 2022 $ 4.5 2023 4.4 2024 5.0 2025 5.0 2026 5.4 Thereafter 29.4 Total minimum lease payments 53.7 Less: interest (20.9) Total financing obligations 32.8 Less: current portion (1) (0.8) Long-term financing obligations $ 32.0 ______________________________________________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The Company's lease cost for the years ended December 31, 2021, 2020, and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 4.6 $ 5.0 $ 5.3 Interest on lease liabilities 5.4 6.6 7.7 Operating lease cost 98.7 109.8 106.2 Variable lease cost 7.0 0.8 2.7 Short-term lease cost 0.1 0.0 0.0 Sublease income (104.6) (96.8) (110.9) Lease cost $ 11.2 $ 25.4 $ 11.0 |
Schedule of Operating Lease Liability Future Maturity | Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 |
Schedule of Finance Lease Liability Future Maturity | As of December 31, 2021, 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) 2022 $ 4.5 2023 4.4 2024 5.0 2025 5.0 2026 5.4 Thereafter 29.4 Total minimum lease payments 53.7 Less: interest (20.9) Total financing obligations 32.8 Less: current portion (1) (0.8) Long-term financing obligations $ 32.0 ______________________________________________________________________ (1) Included in current maturities of finance lease and financing obligations on the consolidated balance sheets. Future minimum lease payments under noncancelable leases as lessee as of December 31, 2021 were as follows: Finance Operating (In millions) 2022 $ 14.3 $ 91.8 2023 11.7 76.6 2024 9.9 72.0 2025 8.1 59.5 2026 7.5 49.9 Thereafter 44.3 126.8 Total minimum lease payments 95.8 476.6 Less: interest/imputed interest (26.3) (83.7) Total obligations 69.5 392.9 Less: current portion (9.9) (72.1) Long-term lease obligations $ 59.6 $ 320.8 |
Schedule of Lease Payments | During the years ended December 31, 2021, 2020 and 2019, the Company made the following cash payments for leases: Year Ended December 31, 2021 2020 2019 (In millions) Principal payments on finance lease obligations $ 10.2 $ 12.5 $ 13.6 Interest payments on finance lease obligations $ 5.4 $ 6.6 $ 7.7 Payments on operating leases $ 91.7 $ 101.1 $ 91.9 Variable lease payments $ 6.2 $ 0.7 $ 2.5 |
Schedule of Operating Lease Income | The Company's income from operating leases for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Minimum lease payments $ 96.0 $ 97.2 $ 102.8 Variable lease income 15.3 5.2 11.5 Total operating lease income $ 111.3 $ 102.4 $ 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, 2021 were as follows: (In millions) 2022 $ 102.3 2023 98.1 2024 89.9 2025 76.9 2026 62.4 Thereafter 131.1 Total minimum rents receivable $ 560.7 |
Schedule of Direct Finance Lease Income | The Company's income from direct financing leases at December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 (In millions) Interest income $ 2.1 $ 3.4 $ 5.0 Variable lease income 0.5 0.3 1.3 Total financing lease income $ 2.6 $ 3.7 $ 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, 2021 were as follows: (In millions) 2022 $ 7.8 2023 3.9 2024 1.8 2025 1.0 2026 0.9 Thereafter 4.4 Total minimum rents receivable 19.8 Less: unearned income (3.1) Total direct financing leases receivable 16.7 Less: current portion (6.6) Long-term direct financing leases receivable $ 10.1 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Repurchase Agreements | A summary of shares repurchased under the 2019 Repurchase Program and the 2015 Repurchase Program, during the years ended December 31, 2021, 2020 and 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, 2021 59,099 $ 4.5 Repurchased during the year ended December 31, 2020 459,899 $ 26.5 Repurchased during the year ended December 31, 2019 1,237,698 $ 103.3 Cumulative (life-of-program) repurchases 1,756,696 $ 134.3 Remaining dollar value of shares that may be repurchased n/a $ 65.7 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 Declared | During the fiscal years ended December 31, 2021, 2020 and 2019, the Company declared and paid dividends on common stock as follows: Year ended December 31, 2021 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Fourth quarter December 20, 2021 (2) 0.40 — — Total $ 0.40 $ — $ — Year ended December 31, 2020 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) Payment of prior year declaration (3) January 10, 2020 — $ 0.69 $ 11.7 First quarter February 20, 2020 April 3, 2020 $ 0.76 0.76 12.7 Total $ 0.76 $ 1.45 $ 24.4 Year ended December 31, 2019 Payment of prior year declaration (4) 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 (3) 0.69 — — Total $ 2.76 $ 2.70 $ 47.9 (1) Includes dividend equivalents paid on restricted stock units (2) The fourth quarter 2021 dividend of $6.9 million was paid on January 7, 2022. (3) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. (4) The fourth quarter 2018 dividend of $11.4 million was paid on January 4, 2019. |
Closure and Long-lived Tangib_2
Closure and Long-lived Tangible Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of Impairment and Closure Charges | ong-lived tangible asset impairment charges for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, December 31, 2021 2020 2019 (In millions) Closure charges $ 3.7 $ 3.0 $ 1.5 Long-lived tangible asset impairment 1.7 22.3 — Total closure and long-lived tangible asset impairment charges $ 5.4 $ 25.3 $ 1.5 |
Stock-Based Incentive Plans (Ta
Stock-Based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 11.6 $ 12.6 $ 10.9 Liability classified awards expense 2.3 1.0 3.2 Total pretax stock-based compensation expense 13.9 13.6 14.1 Book income tax benefit (3.5) (3.4) (3.5) Total stock-based compensation expense, net of tax $ 10.4 $ 10.2 $ 10.6 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in the Black-Scholes model for stock options granted in the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Risk free interest rate 0.5 % 1.2 % 2.5 % Weighted average historical volatility 67.7 % 30.5 % 30.3 % Dividend yield — % 3.5 % 2.8 % Expected years until exercise 4.5 4.6 4.7 Weighted average fair value of options granted $ 40.25 $ 17.53 $ 21.93 |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity for the years ended December 31, 2021, 2020 and 2019 is summarized as follows: Number of Weighted Average Weighted Average Aggregate Intrinsic 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 Granted 167,969 87.17 Exercised (270,024) 76.01 Forfeited (45,247) 86.39 Expired (55,466) 107.78 Outstanding at December 31, 2020 1,014,670 64.16 Granted 95,891 75.28 Exercised (524,536) 48.79 Forfeited (59,468) 88.39 Expired (50,653) 98.61 Outstanding at December 31, 2021 475,904 $ 76.65 6.8 $ 3.5 Vested and Expected to Vest at December 31, 2021 462,179 $ 76.59 6.7 $ 3.5 Exercisable at December 31, 2021 296,959 $ 73.28 5.7 $ 3.0 |
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, 2021, 2020 and 2019 is as follows: Shares of Restricted Stock Weighted Average Restricted Weighted Average 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 Granted 163,522 73.68 30,997 77.33 Released (95,211) 55.75 (33,234) 63.98 Forfeited (38,495) 85.03 — — Outstanding at December 31, 2020 254,331 76.50 355,570 28.01 Granted 141,264 83.24 68,998 63.04 Released (60,407) 66.90 (318,976) 23.19 Forfeited (58,577) 82.09 — — Outstanding at December 31, 2021 276,611 $ 80.85 105,592 $ 71.00 |
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 Outstanding at December 31, 2018 53,766 Granted 20,989 Released (462) Forfeited (10,441) Outstanding at December 31, 2019 63,852 Granted 2,658 Released (1,426) Forfeited (12,128) Outstanding at December 31, 2020 52,956 Granted — Released (38,916) Forfeited (1,241) Outstanding at December 31, 2021 12,799 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows: Year Ended December 31, 2021 2020 2019 Provision (benefit) for income taxes: (In millions) Current Federal $ 20.2 $ 11.0 $ 31.2 State 4.6 3.1 6.5 Foreign 1.4 1.3 1.9 26.2 15.4 39.6 Deferred Federal (2.3) (17.3) (3.8) State 0.2 (2.7) (1.7) (2.1) (20.0) (5.5) Provision (benefit) for income taxes $ 24.1 $ (4.6) $ 34.1 |
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, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Non-deductibility of goodwill impairment — (17.9) — Non-deductibility of officer's compensation 2.2 (0.9) 1.0 State and other taxes, net of federal tax benefit 3.1 1.2 2.8 Excess tax deficiencies or benefits (7.1) 0.1 (0.6) Change in unrecognized tax benefits (0.1) 2.0 1.8 Change in valuation allowance 0.5 (1.5) 0.5 Changes in tax rates and state tax laws 0.2 (0.4) (0.5) General business credits (0.9) 0.8 (1.3) Other 0.8 (0.2) (0.1) Effective tax rate 19.7 % 4.2 % 24.6 % |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets (liabilities) at December 31, 2021 and 2020 consisted of the following components: 2021 2020 (In millions) Lease liabilities $ 112.9 $ 119.6 Employee compensation 12.1 7.5 Revenue recognition 35.4 36.6 Other 8.4 10.2 Deferred tax assets 168.8 173.9 Valuation allowance (4.2) (3.0) Total deferred tax assets after valuation allowance 164.6 170.9 Recognition of franchise and equipment sales (8.2) (10.7) Capitalization and depreciation (2) (122.7) (123.2) Lease assets (108.6) (114.2) Other (1.3) (1.1) Deferred tax liabilities (240.8) (249.2) Net deferred tax liabilities $ (76.2) $ (78.3) (1) Primarily related to the 2007 Applebee's acquisition. |
Summary of Income Tax Contingencies | Year Ended December 31, 2021 2020 2019 (In millions) Unrecognized tax benefit as of January 1 $ 2.2 $ 7.6 $ 5.2 Changes for tax positions of prior years 0.5 — 2.1 Increases for tax positions related to the current year 0.3 0.2 0.5 Decreases relating to settlements and lapsing of statutes of limitations (1.1) (5.6) (0.2) Unrecognized tax benefit as of December 31 $ 1.9 $ 2.2 $ 7.6 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share | The computation of the Company's basic and diluted net income (loss) per share is as follows: Year Ended December 31, 2021 2020 2019 (In thousands, except per share data) Numerator for basic and diluted income (loss) per common share: Net income (loss) $ 97,864 $ (103,994) $ 104,346 Less: Net income allocated to unvested participating restricted stock (2,295) (420) (3,532) Net income (loss) available to common stockholders - basic 95,569 (104,414) 100,814 Effect of unvested participating restricted stock 13 — 33 Numerator - income (loss) available to common shareholders - diluted $ 95,582 $ (104,414) $ 100,847 Denominator: Weighted average outstanding shares of common stock - basic 16,799 16,230 16,934 Effect of dilutive securities: Stock options 91 — 311 Weighted average outstanding shares of common stock - diluted 16,890 16,230 17,245 Net income (loss) per common share: Basic $ 5.69 $ (6.43) $ 5.95 Diluted $ 5.66 $ (6.43) $ 5.85 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information on segments and a reconciliation of gross profit to income (loss) before income taxes is as follows: Year Ended December 31, 2021 2020 2019 Revenues (In millions) Franchise operations $ 631.9 $ 469.5 $ 651.2 Rental operations 114.0 105.9 120.7 Company restaurants 146.0 108.1 131.2 Financing operations 4.3 5.8 7.1 Total $ 896.2 $ 689.3 $ 910.2 Gross profit (loss), by segment Franchise operations $ 336.0 $ 230.5 $ 338.4 Rental operations 26.1 16.4 29.9 Company restaurants 9.3 (3.5) 8.0 Financing operations 3.8 5.3 6.5 Total gross profit 375.2 248.7 382.8 Corporate and unallocated expenses, net (253.3) (357.3) (244.3) Income (loss) before income taxes $ 121.9 $ (108.6) $ 138.5 Interest expense Rental operations $ 4.9 $ 6.3 $ 7.7 Company restaurants 3.3 2.7 2.1 Corporate 63.3 66.9 60.4 Total $ 71.5 $ 75.9 $ 70.2 Depreciation and amortization Franchise operations $ 10.1 $ 10.1 $ 10.3 Rental operations 11.1 12.3 13.4 Company restaurants 7.0 7.0 6.4 Corporate 11.7 13.4 12.4 Total $ 39.9 $ 42.8 $ 42.5 Impairment of goodwill and intangible assets, closure and other impairment charges Franchise operations $ 1.7 $ 122.1 $ — Company restaurants 3.7 10.5 1.5 Total $ 5.4 $ 132.6 $ 1.5 Capital expenditures Franchise operations $ — $ — $ 0.6 Company restaurants 6.5 2.7 3.2 Corporate 10.3 8.2 15.6 Total $ 16.8 $ 10.9 $ 19.4 Goodwill Franchise operations $ 247.0 $ 247.0 $ 339.3 Company restaurants 4.6 4.6 4.6 Total $ 251.6 $ 251.6 $ 343.9 Total assets Franchise operations $ 991.0 $ 997.7 $ 1,116.2 Rental operations 426.5 451.5 503.8 Company restaurants 117.2 121.1 134.3 Financing operations 39.7 49.9 72.0 Corporate 425.0 454.7 223.2 Total $ 1,999.4 $ 2,074.9 $ 2,049.5 |
The Company (Details)
The Company (Details) | Dec. 31, 2021restaurantcountryrestaurantConceptterritoryuSState |
Franchisor Disclosure [Line Items] | |
Number of restaurant concepts | restaurantConcept | 2 |
IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,751 |
Number of states in which entity operates | uSState | 50 |
Number of territories in which entity operates | territory | 2 |
Number of countries outside the United States in which the entity operates | country | 7 |
IHOP | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,595 |
IHOP | Licensing Agreements | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 156 |
Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,680 |
Number of states in which entity operates | uSState | 49 |
Number of territories in which entity operates | territory | 2 |
Number of countries outside the United States in which the entity operates | country | 11 |
Applebee's | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,611 |
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 - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)segmentrevenueCategoryfranchiseerestaurantcountryreportableUnitterritory | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018restaurant | |
Concentration Risk [Line Items] | ||||
Non-current restricted cash | $ | $ 16,400 | $ 32,800 | ||
Number of reporting units | reportableUnit | 3 | |||
Category of revenue categories | revenueCategory | 4 | |||
Advertising expense | $ | $ 6,800 | 5,200 | $ 6,100 | |
Number of operating segments | segment | 5 | |||
Number of reporting segments | segment | 4 | |||
Gift Card Breakage Revenue | ||||
Concentration Risk [Line Items] | ||||
Revenue from contract with customer | $ | $ 300 | $ 300 | ||
Revenue from Rights Concentration Risk | Sales Revenue, Net | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 18.00% | 17.10% | 17.40% | |
Revenue from Rights Concentration Risk | Sales Revenue, Net | Franchisee One | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 11.80% | 11.00% | 10.60% | |
Revenue from Rights Concentration Risk | Accounts Receivable | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Net accounts receivable | $ | $ 19,700 | $ 20,400 | ||
Domestic | Revenue from Rights Concentration Risk | Sales Revenue, Net | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 2 | |||
Number of restaurants | 825 | |||
Concentration risk by percentage | 26.10% | |||
IHOP and Applebee's | Domestic | ||||
Concentration Risk [Line Items] | ||||
Percentage of restaurants operating without government-mandate restriction | 99.00% | |||
IHOP and Applebee's | Non-US | ||||
Concentration Risk [Line Items] | ||||
Percentage of restaurants operating without government-mandate restriction | 32.00% | |||
Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,680 | |||
Number of territories in which entity operates | territory | 2 | |||
Number of countries outside the United States in which the entity operates | country | 11 | |||
Applebee's | Franchised | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,611 | |||
Applebee's | Entity Operated Units | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 69 | 69 | ||
Applebee's | Domestic | Revenue from Rights Concentration Risk | Sales Revenue, Net | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 1 | |||
IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,751 | |||
Number of territories in which entity operates | territory | 2 | |||
Number of countries outside the United States in which the entity operates | country | 7 | |||
IHOP | Franchised | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,595 | |||
IHOP | Franchised Units or Licensing Agreements | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | 1,751 | |||
IHOP | Domestic | Revenue from Rights Concentration Risk | Sales Revenue, Net | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | franchisee | 1 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 361,412 | $ 383,369 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 30,000 | 175,000 |
IHOP advertising funds and gift card programs | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 101,500 | 71,600 |
Other depository accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 229,900 | $ 136,800 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Components of Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 47.5 | $ 39.9 |
Securitized debt reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 29.9 | 27 |
Applebee's advertising funds | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | 17.5 | 12.8 |
Other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total current restricted cash | $ 0.1 | $ 0.1 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - General Range of Depreciable and Amortizable Property and Equipment Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Buildings and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 25 years |
Minimum | Leaseholds and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Minimum | Equipment and fixtures | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Minimum | Internal-use software | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Maximum | Buildings and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 40 years |
Maximum | Leaseholds and improvements | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 40 years |
Maximum | Equipment and fixtures | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Maximum | Internal-use software | |
Property and Equipment [Line Items] | |
Useful life of property and equipment | 10 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Face value of Series 2019-1 Fixed Rate Senior Secured Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Rate Senior Secured Notes | $ 1,287 | $ 1,296.8 |
Fair value of Series 2019-1 Fixed Rate Senior Secured Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Rate Senior Secured Notes | $ 1,312.9 | $ 1,259.5 |
Revenue Disclosures - Disaggreg
Revenue Disclosures - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Franchise revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | $ 631,936 | $ 469,453 | $ 651,186 |
Royalties | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 292,372 | 215,214 | 302,169 |
Advertising fees | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 274,790 | 201,494 | 283,015 |
Pancake and waffle dry mix sales and other | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | 51,250 | 38,936 | 53,973 |
Franchise and development fees | |||
Disaggregation of Revenue [Line Items] | |||
Total franchise revenues | $ 13,524 | $ 13,809 | $ 12,029 |
Revenue Disclosures - Narrative
Revenue Disclosures - Narrative (Details) - Receivables From Franchise Revenue Transactions - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and unbilled receivables | $ 66 | $ 76.3 |
Billed and unbilled receivables, accumulated allowance for credit loss | $ 1.1 | $ 11.4 |
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, 2021USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2020 | $ 59,919 |
Recognized as revenue during the year ended December 31, 2021 | (12,101) |
Fees deferred during the year ended December 31, 2021 | 5,528 |
Balance at December 31, 2021 | $ 53,346 |
Revenue Disclosures - Deferred
Revenue Disclosures - Deferred revenue expected to be recognized (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 53,346 |
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 | $ 7,246 |
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 | $ 6,800 |
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]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,191 |
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]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 5,416 |
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]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 4,597 |
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]: 2027-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 23,096 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Current Expected Credit Losse_3
Current Expected Credit Losses ("CECL") - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)lease | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, interest rate | 4.00% | 4.70% |
Operating lease, weighted average remaining lease term | 6 years 9 months 18 days | |
Finance lease, weighted average remaining lease term | 9 years 6 months | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, term | 1 year | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable, term | 7 years | |
IHOP | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average interest rate | 9.90% | 9.80% |
Notes Receivable Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and financing receivable, allowance for credit loss | $ | $ 10.4 | |
Equipment Receivables | IHOP | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Operating lease, weighted average remaining lease term | 4 years 8 months 12 days | |
Direct financing leases receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of properties subject to ground leases | lease | 70 | |
Finance lease, weighted average remaining lease term | 5 years 2 months 12 days |
Current Expected Credit Losse_4
Current Expected Credit Losses ("CECL") - Components of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables | ||
Accounts receivable | $ 63,600 | $ 85,700 |
Gift card receivables | 33,400 | 22,500 |
Notes receivable | 19,700 | 18,600 |
Financing receivables | 71,600 | |
Accounts and financing receivable, before allowance for credit loss | 174,400 | 199,500 |
Less: allowance for doubtful accounts and notes receivable | (11,900) | (23,100) |
Receivables, net | 162,500 | 176,400 |
Less: current portion | (119,968) | (121,897) |
Long-term receivables | 42,500 | 54,500 |
Equipment leases receivable | ||
Receivables | ||
Financing receivables | 33,400 | 43,900 |
Direct financing leases receivable | ||
Receivables | ||
Financing receivables | 16,700 | 22,700 |
Other | ||
Receivables | ||
Financing receivables | $ 7,600 | $ 6,100 |
Current Expected Credit Losse_5
Current Expected Credit Losses ("CECL") - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | ||
Balance at beginning of period | $ 23.1 | $ 11.3 |
Increase due to CECL adoption | 11.9 | 23.1 |
Bad debt (credit) expense for the year ended December 31, 2021 | (4.9) | 12.8 |
Advertising provision adjustment | (1.9) | 3.5 |
Write-offs | (4.6) | (5.2) |
Recoveries | 0.2 | 0 |
Balance at end of period | 11.9 | 23.1 |
Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.7 | |
Increase due to CECL adoption | ||
Accounts Receivable | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 11.2 | 0.7 |
Increase due to CECL adoption | 1 | 11.2 |
Bad debt (credit) expense for the year ended December 31, 2021 | (8.2) | 5 |
Advertising provision adjustment | (1.8) | 5.4 |
Write-offs | (0.2) | (0.2) |
Recoveries | 0 | 0 |
Balance at end of period | 1 | 11.2 |
Accounts Receivable | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.3 | |
Increase due to CECL adoption | ||
Notes receivable, short-term | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 3.6 | 2.4 |
Increase due to CECL adoption | 3.8 | 3.6 |
Bad debt (credit) expense for the year ended December 31, 2021 | 1.4 | 2.5 |
Advertising provision adjustment | (0.3) | (0.7) |
Write-offs | (0.9) | (0.6) |
Recoveries | 0 | 0 |
Balance at end of period | 3.8 | 3.6 |
Notes receivable, short-term | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0 | |
Increase due to CECL adoption | ||
Notes receivable, long-term | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 5.3 | 8.2 |
Increase due to CECL adoption | 6.6 | 5.3 |
Bad debt (credit) expense for the year ended December 31, 2021 | 1.1 | 0.5 |
Advertising provision adjustment | 0.2 | (1.2) |
Write-offs | 0 | (2.3) |
Recoveries | 0 | 0 |
Balance at end of period | 6.6 | 5.3 |
Notes receivable, long-term | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.1 | |
Increase due to CECL adoption | ||
Lease Receivables | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.4 | 0 |
Increase due to CECL adoption | 0.2 | 0.4 |
Bad debt (credit) expense for the year ended December 31, 2021 | 0.1 | 1.2 |
Advertising provision adjustment | 0 | 0 |
Write-offs | (0.5) | (0.9) |
Recoveries | 0.2 | 0 |
Balance at end of period | 0.2 | 0.4 |
Lease Receivables | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.1 | |
Increase due to CECL adoption | ||
Equipment Receivables | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 2.3 | 0 |
Increase due to CECL adoption | 0.1 | 2.3 |
Bad debt (credit) expense for the year ended December 31, 2021 | 0.8 | 3.4 |
Advertising provision adjustment | 0 | 0 |
Write-offs | (3) | (1.2) |
Recoveries | 0 | 0 |
Balance at end of period | 0.1 | 2.3 |
Equipment Receivables | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.1 | |
Increase due to CECL adoption | ||
Other | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | 0.3 | 0 |
Increase due to CECL adoption | 0.2 | 0.3 |
Bad debt (credit) expense for the year ended December 31, 2021 | (0.1) | 0.2 |
Advertising provision adjustment | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | $ 0.2 | 0.3 |
Other | Cumulative Effect, Period Of Adoption, Adjustment | ||
Allowance for Doubtful Accounts | ||
Balance at beginning of period | $ 0.1 | |
Increase due to CECL adoption |
Current Expected Credit Losse_6
Current Expected Credit Losses ("CECL") - Delinquency Status of Receivables (Details) $ in Millions | Dec. 31, 2021USD ($) |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | $ 71.6 |
Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 70.2 |
30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.4 |
Notes receivable, short-term | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 6.4 |
Notes receivable, short-term | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 5 |
Notes receivable, short-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, short-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.4 |
Notes receivable, long-term | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 13.3 |
Notes receivable, long-term | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 13.3 |
Notes receivable, long-term | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Notes receivable, long-term | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 16.7 |
Lease Receivables | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 16.7 |
Lease Receivables | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Lease Receivables | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 33.4 |
Equipment Receivables | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 33.4 |
Equipment Receivables | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Equipment Receivables | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.8 |
Other | Current | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 1.8 |
Other | 30-59 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 60-89 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 90-119 days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | 0 |
Other | 120+ days | |
Financing Receivable, Past Due [Line Items] | |
Financing receivables | $ 0 |
Current Expected Credit Losse_7
Current Expected Credit Losses ("CECL") - Year of Origination of Financing Receivables (Details) $ in Millions | Dec. 31, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 71.6 |
Total | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 15.8 |
2020 | 2 |
2019 | 1 |
2018 | 0 |
2017 | 5.7 |
Prior | 45.3 |
Total | 69.8 |
Notes receivable, short and long-term | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 13.1 |
2020 | 0.6 |
2019 | 0.2 |
2018 | 0 |
2017 | 5.7 |
Prior | 0.1 |
Total | 19.7 |
Lease Receivables | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 2.7 |
2020 | 1.4 |
2019 | 0.8 |
2018 | 0 |
2017 | 0 |
Prior | 11.8 |
Total | 16.7 |
Equipment Receivables | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 33.4 |
Total | $ 33.4 |
Current Expected Credit Losse_8
Current Expected Credit Losses ("CECL") - Summary of Activity in Allowance for Doubtful Accounts and Notes Receivable (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Allowance for Doubtful Accounts | |
Beginning Balance | $ 17.2 |
Provision | (0.4) |
Write-offs | (5) |
Recoveries | (0.5) |
Ending Balance | $ 11.3 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 534,900 | $ 528,500 |
Less: accumulated depreciation and amortization | (355,500) | (340,500) |
Property and equipment, net | 179,411 | 187,977 |
Leaseholds and improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 221,100 | 221,700 |
Properties under finance leases | ||
Property and Equipment [Line Items] | ||
Properties under finance leases | 94,600 | 95,200 |
Equipment and fixtures | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 52,500 | 51,300 |
Buildings and improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 54,200 | 55,400 |
Land | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 51,300 | 52,100 |
Internal-use software | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 55,700 | 47,800 |
Construction in progress | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,500 | $ 5,000 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property equipment | $ 29.2 | $ 31.9 | $ 30.8 |
Accumulated amortization for properties under finance lease | $ 52.7 | $ 49.6 |
Goodwill - Changes In Carrying
Goodwill - Changes In Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 343,900,000 | $ 345,300,000 |
Purchase price adjustment related to business acquisition | (1,500,000) | |
Impairment loss | (92,200,000) | |
Goodwill, ending balance | 251,628,000 | 343,900,000 |
Applebee's | Franchised | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 328,400,000 | 328,400,000 |
Purchase price adjustment related to business acquisition | 0 | |
Impairment loss | (92,200,000) | |
Goodwill, ending balance | 236,200,000 | 328,400,000 |
Applebee's | Entity Operated Units | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 4,600,000 | 6,100,000 |
Purchase price adjustment related to business acquisition | (1,500,000) | |
Impairment loss | 0 | |
Goodwill, ending balance | 4,600,000 | 4,600,000 |
IHOP | Franchised | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 10,800,000 | 10,800,000 |
Purchase price adjustment related to business acquisition | 0 | |
Impairment loss | 0 | |
Goodwill, ending balance | $ 10,800,000 | $ 10,800,000 |
Goodwill - Gross and net carryi
Goodwill - Gross and net carrying amounts of goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||||
Gross | $ 702,100 | $ 702,100 | ||
Accumulated Impairment Loss | (450,500) | (450,500) | ||
Net | 251,628 | 251,628 | $ 343,900 | $ 345,300 |
Franchised | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 686,700 | 686,700 | ||
Accumulated Impairment Loss | (450,500) | (450,500) | ||
Net | 236,200 | 236,200 | 328,400 | 328,400 |
Franchised | IHOP | ||||
Goodwill [Line Items] | ||||
Gross | 10,800 | 10,800 | ||
Accumulated Impairment Loss | 0 | 0 | ||
Net | 10,800 | 10,800 | 10,800 | 10,800 |
Entity Operated Units | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 4,600 | 4,600 | ||
Accumulated Impairment Loss | 0 | 0 | ||
Net | $ 4,600 | $ 4,600 | $ 4,600 | $ 6,100 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill, impairment loss | $ 92,200,000 |
Franchised | Applebee's | |
Goodwill [Line Items] | |
Goodwill, impairment loss | 92,200,000 |
Entity Operated Units | Applebee's | |
Goodwill [Line Items] | |
Goodwill, impairment loss | $ 0 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite lived, beginning of period | $ 78,000 | |||
Amortization expense | (10,679) | $ (10,903) | $ (11,702) | |
Finite lived, end of period | 67,200 | 78,000 | ||
Total other intangible assets, beginning of period | 549,671 | 575,100 | 585,900 | |
Impairment | (15,100) | |||
Amortization expense | 10,679 | 10,903 | 11,702 | |
Additions | 400 | 500 | 1,000 | |
Total other intangible assets, end of period | 539,390 | 549,671 | 575,100 | $ 585,900 |
Tradename | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite lived, beginning of period | 468,000 | 479,000 | 479,000 | |
Impairment | (11,000) | |||
Additions | 0 | 0 | 0 | |
Indefinite lived, end of period | 468,000 | 468,000 | 479,000 | 479,000 |
Other | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite lived, beginning of period | 3,800 | 3,200 | 2,700 | |
Impairment | 0 | |||
Additions | 400 | 600 | 500 | |
Indefinite lived, end of period | 4,200 | 3,800 | 3,200 | 2,700 |
Franchising Rights | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite lived, beginning of period | 69,000 | 79,000 | 89,000 | |
Impairment | 0 | |||
Amortization expense | (10,000) | (10,000) | (10,000) | |
Additions | 0 | 0 | 0 | |
Finite lived, end of period | 59,000 | 69,000 | 79,000 | 89,000 |
Amortization expense | 10,000 | 10,000 | 10,000 | |
Reacquired Franchise Rights | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite lived, beginning of period | 5,700 | 9,800 | 11,500 | |
Impairment | (3,300) | |||
Amortization expense | (600) | (800) | (1,700) | |
Additions | 0 | 0 | 0 | 11,600 |
Finite lived, end of period | 5,100 | 5,700 | 9,800 | 11,500 |
Amortization expense | 600 | 800 | 1,700 | |
Favorable leaseholds | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite lived, beginning of period | 3,200 | 4,100 | 3,600 | |
Impairment | (800) | |||
Amortization expense | (100) | (100) | (100) | |
Additions | 0 | 0 | 500 | |
Finite lived, end of period | 3,100 | 3,200 | 4,100 | $ 3,600 |
Amortization expense | $ 100 | $ 100 | $ 100 |
Other Intangible Assets - Narra
Other Intangible Assets - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)restaurant | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)restaurant | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense 2022 | $ 10.7 | |||
Amortization expense 2023 | 10.7 | |||
Amortization expense 2024 | 10.7 | |||
Amortization expense 2025 | 10.7 | |||
Amortization expense 2026 | 10.7 | |||
Tradename | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 11 | |||
Reacquired Franchise Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Additions | 0 | 0 | $ 0 | $ 11.6 |
Impairment of intangible assets, finite-lived | 3.3 | |||
Favorable leaseholds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Additions | $ 0 | 0 | $ 0.5 | |
Impairment of intangible assets, finite-lived | 0.8 | |||
Applebee's | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of restaurants | restaurant | 1,680 | |||
Applebee's | Tradename | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 11 | |||
Applebee's | Reacquired Franchise Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, finite-lived | 3.3 | |||
Applebee's | Favorable leaseholds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets, finite-lived | $ 0.8 | |||
Entity Operated Units | Applebee's | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of restaurants | restaurant | 69 | 69 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | $ 211.7 | $ 211.7 | ||
Accumulated Amortization | (144.5) | (133.7) | ||
Net | 67.2 | 78 | ||
Franchising Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 200 | 200 | ||
Accumulated Amortization | (141) | (131) | ||
Net | 59 | 69 | $ 79 | $ 89 |
Reacquired Franchise Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 8.3 | 8.3 | ||
Accumulated Amortization | (3.2) | (2.6) | ||
Net | 5.1 | 5.7 | 9.8 | 11.5 |
Favorable leaseholds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross | 3.4 | 3.4 | ||
Accumulated Amortization | (0.3) | (0.2) | ||
Net | $ 3.1 | $ 3.2 | $ 4.1 | $ 3.6 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Components (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 05, 2019 |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (7,400) | $ (11,800) | |
Long-term debt, net of debt issuance costs | 1,279,600 | 1,505,000 | |
Current portion of long-term debt | 0 | (13,000) | |
Long-term debt, net, less current maturities | 1,279,623 | 1,491,996 | |
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 693,000 | 698,300 | |
Debt interest rate (percent) | 4.194% | 4.194% | |
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 594,000 | 598,500 | |
Debt interest rate (percent) | 4.723% | 4.723% | |
Series 2019-1 Variable Funding Senior Notes Class A-1, variable interest rate of 2.42% at December 31, 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 220,000 | |
Debt interest rate (percent) | 2.42% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Mar. 05, 2021USD ($) | Jun. 05, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)termExtensionOptionRate | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021Rate |
Debt Instrument [Line Items] | |||||||
Cash sweeping event | Rate | 175.00% | ||||||
Rapid amortization event | Rate | 120.00% | ||||||
Manager termination event | Rate | 120.00% | ||||||
Interest-only debt service coverage ratio, default event | Rate | 110.00% | ||||||
Debt service coverage ratio | Rate | 470.00% | ||||||
Repayment of line of credit | $ 220,000,000 | $ 0 | $ 25,000,000 | ||||
Gain (loss) on extinguishment of debt | 0 | 0 | (8,276,000) | ||||
Debt issuance costs | $ 7,400,000 | 11,800,000 | |||||
2019 Class A-2 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Covenant compliance, leverage ratio, maximum | Rate | 525.00% | 525.00% | |||||
Ratio of indebtedness to net capital | Rate | 386.00% | ||||||
Repayments of debt, principle | $ 9,750,000 | ||||||
Amortization of financing costs | 2,200,000 | 2,100,000 | 1,200,000 | ||||
Debt issuance costs, gross | 12,900,000 | ||||||
Debt issuance costs | 7,400,000 | ||||||
Debt instrument, periodic payment, principal | 3,250,000 | ||||||
Debt instrument, annual principal payment | $ 13,000,000 | ||||||
2019 Class A-2-I Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate (percent) | 4.194% | 4.194% | |||||
Debt instrument, face amount | $ 700,000,000 | ||||||
Debt instrument, make-whole premium | $ 10,000,000 | ||||||
Additional interest on fixed rate | 5.00% | ||||||
Debt instrument, term | 10 years | ||||||
2019 Class A-2-I Notes | US Treasury (UST) Interest Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.15% | ||||||
2019 Class A-2-II Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate (percent) | 4.723% | 4.723% | |||||
Debt instrument, face amount | $ 600,000,000 | ||||||
Debt instrument, make-whole premium | $ 39,000,000 | ||||||
2019 Class A-2-II Notes | US Treasury (UST) Interest Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.64% | ||||||
2019 Class A-1 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate (percent) | 2.42% | ||||||
2019 Class A-1 Notes | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit facility, maximum borrowing capacity | $ 225,000,000 | ||||||
Line of credit facility, commitment fee percentage | 0.50% | ||||||
Number of extensions | termExtensionOption | 2 | ||||||
Extension period | 1 year | ||||||
Proceeds from long-term lines of credit | $ 220,000,000 | ||||||
Repayment of line of credit | $ 220,000,000 | ||||||
Maximum amount outstanding during period | $ 220,000,000 | ||||||
Line of credit facility, amount outstanding | $ 0 | ||||||
Debt, weighted average interest rate | 2.42% | ||||||
Debt instrument, collateral amount | $ 3,300,000 | ||||||
Line of credit facility, current borrowing capacity | 221,700,000 | ||||||
Amortization of financing costs | 600,000 | 600,000 | 800,000 | ||||
Debt issuance costs | $ 1,500,000 | ||||||
Debt issuance costs, net | 2,200,000 | ||||||
2019 Class A-1 Notes | Revolving Credit Facility | Eurodollar | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.15% | ||||||
2019 Class A-1 Notes | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.15% | ||||||
Line of credit facility, percentage of advances drawn | 60.00% | ||||||
2019 Class A-1 Notes | Revolving Credit Facility | Commercial Paper Funding Rate Of Conduit Investor | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.15% | ||||||
Line of credit facility, percentage of advances drawn | 40.00% | ||||||
2019 Class A-1 Notes | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.15% | ||||||
Number of extensions | termExtensionOption | 2 | ||||||
Extension period | 1 year | ||||||
2019 Class A-1 Notes | Letter of Credit | Eurodollar | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
2019 Class A-1 Notes | Letter of Credit | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.15% | ||||||
2019 Class A-1 Notes | Letter of Credit | Fed Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
2018-1 Class A-1 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs, gross | 200,000 | ||||||
Debt issuance costs | $ 2,800,000 | ||||||
2014 Class A-2 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Gain (loss) on extinguishment of debt | $ (8,300,000) | ||||||
Amortization of financing costs | $ 1,400,000 |
Financing Obligations - Narrati
Financing Obligations - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2008termExtensionOption | Dec. 31, 2021USD ($)realProperty | Jun. 13, 2008USD ($) | May 19, 2008realProperty | |
Sale Leaseback Transaction Agreement for Properties | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | 181 | |||
Master Lease Agreement | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | 181 | |||
Gross proceeds of sale leaseback transaction | $ | $ 337.2 | |||
Sale leaseback initial term | 20 years | |||
Number of options to extend initial leaseback term | termExtensionOption | 4 | |||
Extension period for options to extend sale leaseback initial term (in years) | 5 years | |||
Properties assigned to franchisee or released from lessor | 158 | |||
Reduction in property and equipment and financing obligations as a result of sales transactions | $ | $ 284.2 |
Financing Obligations - Future
Financing Obligations - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Sale Leaseback Transaction [Line Items] | ||
2022 | $ 14,300 | |
2023 | 11,700 | |
2024 | 9,900 | |
2025 | 8,100 | |
2026 | 7,500 | |
Thereafter | 44,300 | |
Total minimum lease payments | 95,800 | |
Less: interest/imputed interest | (26,300) | |
Total obligations | 69,500 | |
Less: current portion | (9,900) | |
Finance lease obligations, less current maturities | 59,625 | $ 69,012 |
Sale-Leaseback Transactions | ||
Sale Leaseback Transaction [Line Items] | ||
2022 | 4,500 | |
2023 | 4,400 | |
2024 | 5,000 | |
2025 | 5,000 | |
2026 | 5,400 | |
Thereafter | 29,400 | |
Total minimum lease payments | 53,700 | |
Less: interest/imputed interest | (20,900) | |
Total obligations | 32,800 | |
Less: current portion | (800) | |
Finance lease obligations, less current maturities | $ 32,000 |
Lease Disclosures - Narrative (
Lease Disclosures - Narrative (Details) | Dec. 31, 2021restaurantConceptleaseproperties |
Lessee, Lease, Description [Line Items] | |
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease | 330 |
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | lease | 65 |
Finance lease, weighted average remaining lease term | 9 years 6 months |
Operating lease, weighted average remaining lease term | 6 years 9 months 18 days |
Finance lease, weighted average discount rate, percent | 10.10% |
Operating lease, weighted average discount rate, percent | 5.50% |
IHOP | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 540 |
Number of properties leased | 55 |
Lessee, operating lease, renewal term | 5 years |
IHOP | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
IHOP | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
Applebee's | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 1 |
Number of properties leased | 1 |
Number of company-operated restaurants located on leased real estate properties | properties | 69 |
Applebee's | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Applebee's | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 20 years |
Lease Disclosures - Components
Lease Disclosures - Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 4.6 | $ 5 | $ 5.3 |
Interest on lease liabilities | 5.4 | 6.6 | 7.7 |
Operating lease cost | 98.7 | 109.8 | 106.2 |
Variable lease cost | 7 | 0.8 | 2.7 |
Short-term lease cost | 0.1 | 0 | 0 |
Sublease income | (104.6) | (96.8) | (110.9) |
Lease cost | $ 11.2 | $ 25.4 | $ 11 |
Lease Disclosures - Future Mini
Lease Disclosures - Future Minimum Lease Payments Under Noncancelable Leases as Lessee (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2022 | $ 14,300 | |
2023 | 11,700 | |
2024 | 9,900 | |
2025 | 8,100 | |
2026 | 7,500 | |
Thereafter | 44,300 | |
Total minimum lease payments | 95,800 | |
Less: interest/imputed interest | (26,300) | |
Total obligations | 69,500 | |
Less: current portion | (9,900) | |
Long-term lease obligations | $ 59,625 | $ 69,012 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of finance lease and financing obligations | |
Operating Leases | ||
2022 | $ 91,800 | |
2023 | 76,600 | |
2024 | 72,000 | |
2025 | 59,500 | |
2026 | 49,900 | |
Thereafter | 126,800 | |
Total minimum lease payments | 476,600 | |
Less: interest/imputed interest | (83,700) | |
Total obligations | 392,900 | |
Less: current portion | (72,079) | (69,672) |
Long-term lease obligations | $ 320,848 | $ 345,163 |
Lease Disclosures - Payment for
Lease Disclosures - Payment for Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Principal payments on finance lease obligations | $ 10.2 | $ 12.5 | $ 13.6 |
Interest payments on finance lease obligations | 5.4 | 6.6 | 7.7 |
Payments on operating leases | 91.7 | 101.1 | 91.9 |
Variable lease payments | $ 6.2 | $ 0.7 | $ 2.5 |
Lease Disclosures - Component_2
Lease Disclosures - Components of Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Minimum lease payments | $ 96 | $ 97.2 | $ 102.8 |
Variable lease income | 15.3 | 5.2 | 11.5 |
Total operating lease income | $ 111.3 | $ 102.4 | $ 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, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 102.3 |
2023 | 98.1 |
2024 | 89.9 |
2025 | 76.9 |
2026 | 62.4 |
Thereafter | 131.1 |
Total minimum rents receivable | $ 560.7 |
Lease Disclosures - Schedule of
Lease Disclosures - Schedule of Income From Direct Financing Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Interest income | $ 2.1 | $ 3.4 | $ 5 |
Variable lease income | 0.5 | 0.3 | 1.3 |
Total financing lease income | $ 2.6 | $ 3.7 | $ 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, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 7.8 |
2023 | 3.9 |
2024 | 1.8 |
2025 | 1 |
2026 | 0.9 |
Thereafter | 4.4 |
Total minimum rents receivable | 19.8 |
Less: unearned income | (3.1) |
Total direct financing leases receivable | 16.7 |
Less: current portion | (6.6) |
Long-term direct financing leases receivable | $ 10.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Outstanding purchase commitments | $ 78.1 | |
Lease guarantees, future minimum payments due | 49.2 | |
Letter of Credit | 2019 Class A-1 Notes | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, available remaining borrowing capacity | 3.3 | |
Applebee's | Property Lease Guarantee | ||
Loss Contingencies [Line Items] | ||
Outstanding lease guarantees | 223.1 | $ 245.6 |
Advertising | ||
Loss Contingencies [Line Items] | ||
Outstanding purchase commitments | $ 62.7 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2021 | Oct. 20, 2021 | Feb. 20, 2020 | Oct. 08, 2019 | Aug. 01, 2019 | May 13, 2019 | Feb. 20, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2019 | Oct. 31, 2015 |
Class of Stock [Line Items] | ||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.76 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.40 | $ 0.76 | $ 2.76 | ||
Reissuance of treasury stock (in shares) | 660,718 | 433,477 | 285,302 | |||||||||
Reissuance of treasury stock | $ 25,337 | $ 20,522 | $ 11,969 | |||||||||
Treasury Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Reissuance of treasury stock (in shares) | 661,000 | 433,000 | 285,000 | |||||||||
Reissuance of treasury stock | $ 26,795 | $ 19,420 | $ 12,490 | |||||||||
2019 Repurchase Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized amount | $ 200,000 | |||||||||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Stock repurchased during period, value | $ 4,480 | $ 26,527 | $ 111,697 |
2019 Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | 59,099 | 459,899 | 1,237,698 |
Stock repurchased during period, value | $ 4,500 | $ 26,500 | $ 103,300 |
Cumulative amount of shares repurchased (in shares) | 1,756,696 | ||
Cumulative payments for repurchase of common stock | $ 134,300 | ||
Remaining dollar value of shares that may be repurchased | $ 65,700 | ||
2015 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. 17, 2022 | Jan. 07, 2022 | Oct. 28, 2021 | Oct. 20, 2021 | Apr. 03, 2020 | Feb. 20, 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 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Dividends Payable [Line Items] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.76 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.40 | $ 0.76 | $ 2.76 | ||||||||
Dividends paid per common share (in dollars per share) | $ 0.76 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.63 | $ 1.45 | $ 2.70 | ||||||||||
Dividends paid | $ 12.7 | $ 11.7 | $ 11.8 | $ 12.2 | $ 12.5 | $ 11.4 | $ 24.4 | $ 47.9 | ||||||||||
Subsequent Event | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.46 | |||||||||||||||||
Dividends paid | $ 6.9 |
Closure and Long-lived Tangib_3
Closure and Long-lived Tangible Asset Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |||
Closure charges | $ 3.7 | $ 3 | $ 1.5 |
Long-lived tangible asset impairment | 1.7 | 22.3 | 0 |
Total closure and long-lived tangible asset impairment charges | $ 5.4 | $ 25.3 | $ 1.5 |
Closure and Long-lived Tangib_4
Closure and Long-lived Tangible Asset Impairment Charges - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)restaurant | Dec. 31, 2020USD ($)restaurant | Dec. 31, 2019USD ($)restaurant | |
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 3,700 | $ 3,000 | $ 1,500 |
Long-lived tangible asset impairment | 1,700 | 22,300 | 0 |
Operating lease, impairment loss | 15,100 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Long-lived tangible asset impairment per asset | 1,300 | ||
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Long-lived tangible asset impairment per asset | 5 | ||
Land, Building, Leasehold Improvements And Finance Leases | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating lease, impairment loss | 7,200 | ||
IHOP and Applebee's | |||
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 500 | ||
IHOP | |||
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 1,600 | ||
Exit costs | $ 2,100 | ||
Number of restaurants related to exit costs | restaurant | 20 | ||
Revision to existing closure reserves | $ 1,600 | ||
Number of restaurants related to prior period closure charge revisions | restaurant | 28 | ||
Number of restaurants subject to closure charges | restaurant | 7 | 2 | |
Number of restaurants subject to asset impairment | restaurant | 5 | ||
IHOP | Franchised | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants subject to asset impairment | restaurant | 41 | ||
Applebee's | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants subject to closure charges | restaurant | 1 | ||
Applebee's | Entity Operated Units | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of restaurants subject to asset impairment | restaurant | 29 |
Stock-Based Incentive Plans - N
Stock-Based Incentive Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 14, 2019 | Dec. 31, 2016 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, options, exercises in period, intrinsic value | $ 17,900 | $ 4,300 | $ 6,900 | |||
Proceeds from stock options exercised | 25,337 | 20,523 | 11,969 | |||
Tax benefit realized for tax deduction from option exercises | 4,500 | 1,100 | 1,800 | |||
Share-based payment arrangement, expense | 13,900 | 13,600 | 14,100 | |||
Employee-related liabilities, current | 40,785 | 21,237 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 2,900 | |||||
Unrecognized compensation cost, recognition period | 1 year 6 months | |||||
Restricted Stock and Restricted Stock Units | ||||||
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 | |||||
Cash-Settled Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 1,500 | 300 | 1,600 | |||
Employee-related liabilities, current | $ 900 | 2,500 | ||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Share-based payment arrangement, expense | $ 800 | 700 | $ 1,700 | |||
Employee-related liabilities, current | $ 1,500 | $ 2,100 | ||||
LTIP | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Multiplier for target award | 0.00% | |||||
LTIP | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Multiplier for target award | 200.00% | |||||
Officers, Directors, and Employees | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, expiration period | 10 years | |||||
Award vesting period | 3 years | |||||
Officers, Directors, and Employees | Restricted Stock and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Vesting share-based awards percentage | 33.33% | |||||
2019 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Company’s common stock for incentive stock awards (in shares) | 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 (in shares) | 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 (in shares) | 1,500,000 |
Stock-Based Incentive Plans - S
Stock-Based Incentive Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Equity classified awards expense | $ 11.6 | $ 12.6 | $ 10.9 |
Liability classified awards expense | 2.3 | 1 | 3.2 |
Total pretax stock-based compensation expense | 13.9 | 13.6 | 14.1 |
Book income tax benefit | (3.5) | (3.4) | (3.5) |
Total stock-based compensation expense, net of tax | $ 10.4 | $ 10.2 | $ 10.6 |
Stock-Based Incentive Plans - E
Stock-Based Incentive Plans - Equity Classified Awards Stock Options (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 0.50% | 1.20% | 2.50% |
Weighted average historical volatility | 67.70% | 30.50% | 30.30% |
Dividend yield | 0.00% | 3.50% | 2.80% |
Expected years until exercise | 4 years 6 months | 4 years 7 months 6 days | 4 years 8 months 12 days |
Weighted average fair value of options granted (in USD per share) | $ 40.25 | $ 17.53 | $ 21.93 |
Stock-Based Incentive Plans -_2
Stock-Based Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares Under Option | |||
Beginning of period, outstanding (in shares) | 1,014,670 | 1,217,438 | 1,439,708 |
Granted (in shares) | 95,891 | 167,969 | 132,832 |
Exercised (in shares) | (524,536) | (270,024) | (211,352) |
Forfeited (in shares) | (59,468) | (45,247) | (106,745) |
Expired (in shares) | (50,653) | (55,466) | (37,005) |
End of period, outstanding (in shares) | 475,904 | 1,014,670 | 1,217,438 |
Vested and expected to vest (in shares) | 462,179 | ||
Exercisable (in shares) | 296,959 | ||
Weighted Average Exercise Price Per Share | |||
Beginning of period, outstanding (in USD per share) | $ 64.16 | $ 66.43 | $ 63.21 |
Granted (in USD per share) | 75.28 | 87.17 | 98.97 |
Exercised (in USD per share) | 48.79 | 76.01 | 57.36 |
Forfeited (in USD per share) | 88.39 | 86.39 | 72.19 |
Expired (in USD per share) | 98.61 | 107.78 | 93.06 |
End of period, outstanding (in USD per share) | 76.65 | $ 64.16 | $ 66.43 |
Vested and expected to vest (in USD per share) | 76.59 | ||
Exercisable (in USD per share) | $ 73.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term, outstanding (in years) | 6 years 9 months 18 days | ||
Weighted average remaining contractual term, vested and expected to vest (in years) | 6 years 8 months 12 days | ||
Weighted average remaining contractual term, exercisable (in years) | 5 years 8 months 12 days | ||
Aggregate intrinsic value, outstanding | $ 3.5 | ||
Aggregate intrinsic value, vested and expected to vest | 3.5 | ||
Aggregate intrinsic value, exercisable | $ 3 |
Stock-Based Incentive Plans - D
Stock-Based Incentive Plans - Disclosure of Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock | |||
Number of Shares | |||
Beginning of period, outstanding (shares) | 254,331 | 224,515 | 267,242 |
Granted (shares) | 141,264 | 163,522 | 75,556 |
Released (in shares) | (60,407) | (95,211) | (76,962) |
Forfeited (shares) | (58,577) | (38,495) | (41,321) |
End of period, outstanding (shares) | 276,611 | 254,331 | 224,515 |
Weighted Average Grant-Date Per Share Fair Value | |||
Beginning of period, outstanding (in USD per share) | $ 76.50 | $ 70.52 | $ 64.21 |
Granted (in USD per share) | 83.24 | 73.68 | 96.86 |
Released (in USD per share) | 66.90 | 55.75 | 76.25 |
Forfeited (in USD per share) | 82.09 | 85.03 | 67.20 |
End of period, outstanding (in USD per share) | $ 80.85 | $ 76.50 | $ 70.52 |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Beginning of period, outstanding (shares) | 355,570 | 357,807 | 374,529 |
Granted (shares) | 68,998 | 30,997 | 23,427 |
Released (in shares) | (318,976) | (33,234) | (12,347) |
Forfeited (shares) | 0 | 0 | (27,802) |
End of period, outstanding (shares) | 105,592 | 355,570 | 357,807 |
Weighted Average Grant-Date Per Share Fair Value | |||
Beginning of period, outstanding (in USD per share) | $ 28.01 | $ 30.35 | $ 31.05 |
Granted (in USD per share) | 63.04 | 77.33 | 95.77 |
Released (in USD per share) | 23.19 | 63.98 | 90.34 |
Forfeited (in USD per share) | 0 | 0 | 34.53 |
End of period, outstanding (in USD per share) | $ 71 | $ 28.01 | $ 30.35 |
Stock-Based Incentive Plans - L
Stock-Based Incentive Plans - Liability Classified Awards - Cash-settled Restricted Stock Units (Details) - Cash-Settled Restricted Stock Units - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash-Settled Restricted Stock Units | |||
Beginning of period, outstanding (shares) | 52,956 | 63,852 | 53,766 |
Granted (shares) | 0 | 2,658 | 20,989 |
Released (shares) | (38,916) | (1,426) | (462) |
Forfeited (shares) | (1,241) | (12,128) | (10,441) |
End of period, outstanding (shares) | 12,799 | 52,956 | 63,852 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | Jan. 01, 2013 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made to 401(k) | $ 2.9 | $ 2.8 | $ 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 (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provision (benefit) for income taxes: | |||
Federal | $ 20,200 | $ 11,000 | $ 31,200 |
State | 4,600 | 3,100 | 6,500 |
Foreign | 1,400 | 1,300 | 1,900 |
Current Income Tax Expense | 26,200 | 15,400 | 39,600 |
Deferred | |||
Federal | (2,300) | (17,300) | (3,800) |
State | 200 | (2,700) | (1,700) |
Deferred income tax expense (benefit) | (2,065) | (20,049) | (5,494) |
Provision (benefit) for income taxes | $ 24,059 | $ (4,568) | $ 34,127 |
Income Taxes - Income tax rate
Income Taxes - Income tax rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Non-deductibility of goodwill impairment | 0.00% | (17.90%) | 0.00% |
Non-deductibility of officer's compensation | 2.20% | (0.90%) | 1.00% |
State and other taxes, net of federal tax benefit | 3.10% | 1.20% | 2.80% |
Excess tax deficiencies or benefits | (7.10%) | 0.10% | (0.60%) |
Change in unrecognized tax benefits | (0.10%) | 2.00% | 1.80% |
Change in valuation allowance | 0.50% | (1.50%) | 0.50% |
Changes in tax rates and state tax laws | 0.20% | (0.40%) | (0.50%) |
General business credits | (0.90%) | 0.80% | (1.30%) |
Other | 0.80% | (0.20%) | (0.10%) |
Effective tax rate | 19.70% | 4.20% | 24.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 19.70% | 4.20% | 24.60% | |
Goodwill, impairment loss | $ 92.2 | |||
Deferred tax assets, foreign tax credit carryforward | $ 4.2 | |||
Operating loss carryforwards | 23.6 | 13.3 | ||
Unrecognized tax benefits | 1.9 | 2.2 | $ 7.6 | $ 5.2 |
Unrecognized tax benefit changes in next 12 months | 0.1 | |||
Unrecognized tax benefits, interest on income taxes accrued | 0.6 | 0.9 | ||
Unrecognized tax benefits, income tax penalties accrued | $ 0.1 | $ 0.1 |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Lease liabilities | $ 112.9 | $ 119.6 |
Employee compensation | 12.1 | 7.5 |
Revenue recognition | 35.4 | 36.6 |
Other | 8.4 | 10.2 |
Deferred tax assets | 168.8 | 173.9 |
Valuation allowance | (4.2) | (3) |
Total deferred tax assets after valuation allowance | 164.6 | 170.9 |
Recognition of franchise and equipment sales | (8.2) | (10.7) |
Capitalization and depreciation | (122.7) | (123.2) |
Lease assets | (108.6) | (114.2) |
Other | (1.3) | (1.1) |
Deferred tax liabilities | (240.8) | (249.2) |
Net deferred tax liabilities | $ (76.2) | $ (78.3) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 2.2 | $ 7.6 | $ 5.2 |
Changes for tax positions of prior years | 0.5 | 0 | 2.1 |
Increases for tax positions related to the current year | 0.3 | 0.2 | 0.5 |
Decreases relating to settlements and lapsing of statutes of limitations | (1.1) | (5.6) | (0.2) |
Unrecognized tax benefit as of December 31 | $ 1.9 | $ 2.2 | $ 7.6 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted income (loss) per common share: | |||
Net income (loss) | $ 97,864 | $ (103,994) | $ 104,346 |
Less: Net income allocated to unvested participating restricted stock | (2,295) | (420) | (3,532) |
Net income (loss) available to common stockholders | 95,569 | (104,414) | 100,814 |
Effect of unvested participating restricted stock | 13 | 0 | 33 |
Numerator - income (loss) available to common shareholders - diluted | $ 95,582 | $ (104,414) | $ 100,847 |
Denominator: | |||
Weighted average outstanding shares of common stock - basic (in shares) | 16,799 | 16,230 | 16,934 |
Stock options (in shares) | 91 | 0 | 311 |
Weighted average outstanding shares of common stock - diluted (in shares) | 16,890 | 16,230 | 17,245 |
Net income (loss) per common share: | |||
Basic (in dollars per share) | $ 5.69 | $ (6.43) | $ 5.95 |
Diluted (in dollars per share) | $ 5.66 | $ (6.43) | $ 5.85 |
Net (Loss) Income Per Share - N
Net (Loss) Income Per Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,056 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 113,933 | $ 105,939 | $ 120,666 | |
Total revenues | 896,167 | 689,268 | 910,178 | |
Gross profit (loss), by segment | 121,923 | (108,562) | 138,473 | |
Interest expense | 71,500 | 75,900 | 70,200 | |
Depreciation and amortization | 39,885 | 42,829 | 42,493 | |
Impairment of goodwill and intangible assets, closure and other impairment charges | 5,400 | 132,600 | 1,500 | |
Capital expenditures | 16,849 | 10,927 | 19,424 | |
Goodwill | 251,628 | 251,628 | 343,900 | $ 345,300 |
Total assets | 1,999,366 | 2,074,945 | 2,049,500 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 375,200 | 248,700 | 382,800 | |
Goodwill | 251,600 | 251,600 | 343,900 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | (253,300) | (357,300) | (244,300) | |
Interest expense | 63,300 | 66,900 | 60,400 | |
Depreciation and amortization | 11,700 | 13,400 | 12,400 | |
Capital expenditures | 10,300 | 8,200 | 15,600 | |
Total assets | 425,000 | 454,700 | 223,200 | |
Franchise operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 631,936 | 469,453 | 651,186 | |
Financing operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 4,298 | 5,822 | 7,112 | |
Franchise operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 336,000 | 230,500 | 338,400 | |
Depreciation and amortization | 10,100 | 10,100 | 10,300 | |
Impairment of goodwill and intangible assets, closure and other impairment charges | 1,700 | 122,100 | 0 | |
Capital expenditures | 0 | 0 | 600 | |
Total assets | 991,000 | 997,700 | 1,116,200 | |
Franchise operations | Franchise operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 631,900 | 469,500 | 651,200 | |
Goodwill | 247,000 | 247,000 | 339,300 | |
Rental operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 114,000 | 105,900 | 120,700 | |
Gross profit (loss), by segment | 26,100 | 16,400 | 29,900 | |
Interest expense | 4,900 | 6,300 | 7,700 | |
Depreciation and amortization | 11,100 | 12,300 | 13,400 | |
Total assets | 426,500 | 451,500 | 503,800 | |
Company restaurants | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 9,300 | (3,500) | 8,000 | |
Interest expense | 3,300 | 2,700 | 2,100 | |
Depreciation and amortization | 7,000 | 7,000 | 6,400 | |
Impairment of goodwill and intangible assets, closure and other impairment charges | 3,700 | 10,500 | 1,500 | |
Capital expenditures | 6,500 | 2,700 | 3,200 | |
Total assets | 117,200 | 121,100 | 134,300 | |
Company restaurants | Company restaurants | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 146,000 | 108,100 | ||
Company restaurants | Company restaurants | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | 131,200 | |||
Goodwill | 4,600 | 4,600 | 4,600 | |
Financing operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), by segment | 3,800 | 5,300 | 6,500 | |
Total assets | 39,700 | 49,900 | 72,000 | |
Financing operations | Financing operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer | $ 4,300 | $ 5,800 | $ 7,100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 17, 2022 | Oct. 28, 2021 | Oct. 20, 2021 | Feb. 20, 2020 | Oct. 08, 2019 | Aug. 01, 2019 | May 13, 2019 | Feb. 20, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.76 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.40 | $ 0.76 | $ 2.76 | |
2019 Repurchase Program | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Remaining dollar value of shares that may be repurchased | $ 66 | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.46 | ||||||||||
Subsequent Event | 2022 Repurchase Program | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Authorized amount | $ 250 |