Assets Held For Sale

The Company classifies assets as held for sale and ceases the depreciation of the assets when there is a plan for disposal of the assets and those assets meet the held for sale criteria as defined in U.S. GAAP. Reacquired franchises, property and equipment and other assets held for sale are accounted for on the specific identification basis.

Reacquired franchises

For reacquired franchises, the Company records the value of the reacquired franchise and equipment at the lower of (1) the sum of the franchise receivables and costs of reacquisition, or (2) the estimated net realizable value at the reacquisition date. Pending the sale of such franchise, the carrying value is amortized ratably over the remaining life of the asset or lease, and the estimated net realizable value is evaluated in conjunction with our impairment evaluation of long-lived assets. There were no reacquired franchises and equipment included in assets held for sale at December 31, 2011; there was $332,000 of reacquired franchises and equipment included in assets held for sale at December 31, 2010.

Property and equipment

At December 31, 2010, assets held for sale primarily consisted of assets of 36 Applebee's company-operated restaurants in the St. Louis market area of Missouri, 30 Applebee's company-operated restaurants in the Washington, D.C. area, three parcels of land on which refranchised Applebee's formerly company-operated restaurants are situated, three parcels of land previously intended for future restaurant development and one IHOP restaurant held for refranchising.

The following table summarizes the changes in the balance of assets held for sale during fiscal 2011:



	(In millions)
Balance December 31, 2010	$	37.9
Assets transferred to held for sale	43.3
Assets sold	(71.2		)
Assets refranchised	(0.7		)
Other	0.1
Balance December 31, 2011	$	9.4

During the twelve months ended December 31, 2011, the Company entered into two agreements for the refranchising of Applebee's company-operated restaurants and sale of related restaurant assets. The first agreement related to 66 restaurants located in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont and parts of New York and the second agreement related to 17 restaurants located in a six-state market area geographically centered around Memphis, Tennessee. The Company also entered into an agreement for the sale of the land and building of a single Applebee's company-operated restaurant. Accordingly, $43.3 million, representing the net book value of the assets related to these restaurants, was transferred to assets held for sale. One IHOP franchise restaurant was taken back to be refranchised.

Assets sold of $71.2 million comprised: 66 Applebee's company-operated restaurants located in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont and parts of New York; 36 Applebee's company-operated restaurants in the St. Louis market area; 30 Applebee's company-operated restaurants in the Washington, D.C. market; the land and building of the single Applebee's company-operated restaurant; and two parcels of land on which Applebee's franchised restaurants are situated. Additionally, the two IHOP restaurants held for sale (one held as of December 31, 2010 and one taken back during 2011) were refranchised.

The balance of assets held for sale at December 31, 2011 of $9.4 million was primarily comprised of 17 Applebee's company-operated restaurants located in a six-state market area geographically centered around Memphis, Tennessee, one parcel of land on which a refranchised Applebee's formerly company-operated restaurant is situated and three parcels of land previously intended for future restaurant development. See Note 25, Subsequent Events.

All assets reported as held for sale are part of the company restaurant operations segment.