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Consolidation of Variable Interest Entities
12 Months Ended
Dec. 31, 2011
Consolidation of Variable Interest Entities [Abstract]  
Consolidation of Variable Interest Entities [Text Block]
Consolidation of Variable Interest Entities
The Company has potential involvement with variable interest entities ("VIEs") in the form of franchise agreements between the Company and franchisees of IHOP and Applebee's restaurants. The Company concluded that both the IHOP and Applebee's franchisees have key decision-making abilities which enable them to have a significant impact on the success and the fair value of their respective franchises and, therefore, that the franchise agreements are not VIEs.
The Company also assessed whether Centralized Supply Chain Services, LLC ("CSCS"), a purchasing co-operative formed in February 2009 by the Company and owners of Applebee's and IHOP franchise restaurants to manage procurement activities for the Applebee's and IHOP restaurants choosing to join CSCS, was a VIE and whether the Company was the primary beneficiary. The Company does not have voting control of CSCS. Under the terms of the membership agreements, each member restaurant belonging to CSCS has equal and identical voting rights, ownership rights and obligations. Accordingly, the Company is not considered to be the primary beneficiary of the VIE and therefore does not consolidate the results of CSCS. There have been no changes in the significant facts and circumstances related to the Company's involvement with CSCS during the year ended December 31, 2011.
CSCS does not purchase items on behalf of member restaurants; rather, it facilitates purchasing agreements and distribution arrangements between suppliers and member restaurants. Because of this, CSCS acquires a minimal amount of assets and incurs a minimal amount of liabilities. Each member restaurant is responsible for only the goods and services it chooses to purchase and bears no responsibility or risk of loss for goods and services purchased by other member restaurants. Based on these facts, the Company believes the maximum estimated loss related to its membership in the CSCS is insignificant. The Company is not obligated to provide any support to the Co-op under any express or implied agreement.