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Consolidating Financial Information
6 Months Ended
Jun. 30, 2012
Consolidating Financial Information [Abstract]  
Consolidating Fiancial Information
Consolidating Financial Information
 
Certain of the Company's subsidiaries have guaranteed the Company's obligations under the Senior Secured Credit Facility. The following presents the condensed consolidating financial information separately for: (i) the parent Company, the issuer of the guaranteed obligations; (ii) the guarantor subsidiaries, on a combined basis, as specified in the Credit Agreement; (iii) the non-guarantor subsidiaries, on a combined basis; (iv) consolidating eliminations and reclassifications; and (v) DineEquity, Inc. and Subsidiaries, on a consolidated basis.
 
Each guarantor subsidiary is 100% owned by the Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.
 
Supplemental Condensed Consolidating Balance Sheet
June 30, 2012
(In millions(1))
 
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current Assets
 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
$
—

 
$
31.9

 
$
0.5

 
$
—

 
$
32.4

Receivables, net
 
0.9

 
84.9

 
0.1

 
(8.0
)
 
77.9

Inventories
 
—

 
12.1

 
—

 
—

 
12.1

Prepaid expenses and other current assets
 
118.5

 
48.8

 
—

 
(111.1
)
 
56.2

Deferred income taxes
 
2.3

 
22.4

 
0.3

 
—

 
25.0

Assets held for sale
 
—

 
25.8

 
1.8

 
—

 
27.6

Intercompany
 
(283.6
)
 
278.0

 
5.6

 
—

 
—

Total current assets
 
(161.9
)
 
503.9

 
8.3

 
(119.1
)
 
231.2

Long-term receivables
 
—

 
219.4

 
—

 
—

 
219.4

Property and equipment, net
 
24.3

 
411.3

 
—

 
—

 
435.6

Goodwill
 
—

 
697.5

 
—

 
—

 
697.5

Other intangible assets, net
 
—

 
815.6

 
—

 
—

 
815.6

Other assets, net
 
20.9

 
93.7

 
—

 
—

 
114.6

Investment in subsidiaries
 
1,697.6

 
—

 
—

 
(1,697.6
)
 
—

Total assets
 
$
1,580.9

 
$
2,741.4

 
$
8.3

 
$
(1,816.7
)
 
$
2,513.9

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
 
$
15.4

 
$
—

 
$
—

 
$
(8.0
)
 
$
7.4

Accounts payable
 
2.2

 
26.3

 
—

 
—

 
28.5

Accrued employee compensation and benefits
 
4.6

 
14.5

 
—

 


 
19.1

Gift card liability
 
—

 
91.3

 
—

 


 
91.3

Income taxes payable
 
(23.9
)
 
135.0

 
—

 
(111.1
)
 
—

Other accrued expenses
 
15.0

 
34.7

 
0.3

 


 
50.0

Total current liabilities
 
13.3

 
301.8

 
0.3

 
(119.1
)
 
196.3

Long-term debt
 
1,338.8

 
—

 
—

 


 
1,338.8

Financing obligations
 
—

 
151.6

 
—

 


 
151.6

Capital lease obligations
 
—

 
129.1

 
—

 


 
129.1

Deferred income taxes
 
6.5

 
366.0

 
(0.3
)
 
—

 
372.2

Other liabilities
 
5.5

 
102.9

 
0.9

 


 
109.3

Total liabilities
 
1,364.1

 
1,051.4

 
0.9

 
(119.1
)
 
2,297.3

Total stockholders’ equity
 
216.8

 
1,690.0

 
7.4

 
(1,697.6
)
 
216.6

Total liabilities and stockholders’ equity
 
$
1,580.9

 
$
2,741.4

 
$
8.3

 
$
(1,816.7
)
 
$
2,513.9


(1) Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.


Supplemental Condensed Consolidating Balance Sheet
December 31, 2011
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current Assets
 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
$
9.9

 
$
50.4

 
$
0.4

 
$
—

 
$
60.7

Receivables, net
 
0.6

 
121.0

 
0.1

 
(6.0
)
 
115.7

Inventories
 
—

 
12.0

 
—

 
—

 
12.0

Prepaid expenses and other current assets
 
85.3

 
44.6

 
—

 
(71.3
)
 
58.6

Deferred income taxes
 
1.5

 
19.0

 
0.1

 
—

 
20.6

Assets held for sale
 
—

 
7.3

 
2.1

 
—

 
9.4

Intercompany
 
(300.2
)
 
294.5

 
5.7

 
—

 
—

Total current assets
 
(202.9
)
 
548.7

 
8.4

 
(77.3
)
 
276.9

Long-term receivables
 
—

 
226.5

 
—

 
—

 
226.5

Property and equipment, net
 
24.6

 
449.6

 
—

 
—

 
474.2

Goodwill
 
—

 
697.5

 
—

 
—

 
697.5

Other intangible assets, net
 
—

 
822.4

 
—

 
—

 
822.4

Other assets, net
 
23.2

 
93.5

 
0.1

 
—

 
116.8

Investment in subsidiaries
 
1,697.6

 
—

 
—

 
(1,697.6
)
 
—

Total assets
 
$
1,542.5

 
$
2,838.2

 
$
8.5

 
$
(1,774.9
)
 
$
2,614.3

Liabilities and Stockholders’ Equity
 
 

 
 

 
 

 
 

 
 

Current Liabilities
 
 

 
 

 
 

 
 

 
 

Current maturities of long-term debt
 
$
13.4

 
$
—

 
$
—

 
$
(6.0
)
 
$
7.4

Accounts payable
 
2.8

 
26.2

 
—

 
—

 
29.0

Accrued employee compensation and benefits
 
6.7

 
19.5

 
—

 
—

 
26.2

Gift card liability
 
—

 
147.0

 
—

 
—

 
147.0

Other accrued expenses
 
(61.6
)
 
180.6

 
0.4

 
(71.3
)
 
48.1

Total current liabilities
 
(38.7
)
 
373.3

 
0.4

 
(77.3
)
 
257.6

Long-term debt
 
1,411.4

 
—

 
—

 
—

 
1,411.4

Financing obligations
 
—

 
162.7

 
—

 
—

 
162.7

Capital lease obligations
 
—

 
134.4

 
—

 
—

 
134.4

Deferred income taxes
 
8.9

 
375.3

 
(0.4
)
 
—

 
383.8

Other liabilities
 
5.4

 
102.6

 
1.1

 
—

 
109.1

Total liabilities
 
1,387.0

 
1,148.3

 
1.1

 
(77.3
)
 
2,459.1

Total stockholders’ equity
 
155.5

 
1,689.9

 
7.4

 
(1,697.6
)
 
155.2

Total liabilities and stockholders’ equity
 
$
1,542.5

 
$
2,838.2

 
$
8.5

 
$
(1,774.9
)
 
$
2,614.3


(1) Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.








Supplemental Condensed Consolidating Statement of Operations
For the Three Months Ended June 30, 2012
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Revenues
 
 

 
 

 
 

 
 

 
 

Franchise revenues
 
$
0.6

 
$
101.6

 
$
0.3

 
$
—

 
$
102.5

Restaurant sales
 
—

 
93.8

 
—

 
—

 
93.8

Rental revenues
 
—

 
29.2

 
—

 
—

 
29.1

Financing revenues
 
—

 
4.0

 
—

 
—

 
4.0

Total revenue
 
0.6

 
228.6

 
0.3

 
—

 
229.4

Franchise expenses
 
0.6

 
25.7

 
—

 
—

 
26.3

Restaurant expenses
 
—

 
79.6

 
—

 
—

 
79.6

Rental expenses
 
—

 
24.3

 
—

 
—

 
24.3

Financing expenses
 
—

 
0.9

 
—

 
—

 
0.9

General and administrative
 
6.1

 
30.6

 
0.5

 
—

 
37.2

Interest expense
 
27.0

 
2.7

 
—

 
—

 
29.7

Impairment and closure
 
—

 
0.1

 
—

 
—

 
0.1

Amortization of intangible assets
 
—

 
3.1

 
—

 
—

 
3.1

Loss (gain) on disposition of assets
 
—

 
1.2

 
(0.4
)
 
—

 
0.7

Loss on extinguishment of debt
 
—

 
—

 
—

 
—

 
—

Intercompany dividend
 
(37.0
)
 
—

 
—

 
37.0

 
—

Income (loss) before income taxes
 
3.9

 
60.4

 
0.2

 
(37.0
)
 
27.4

Benefit (provision) for income taxes
 
12.8

 
(23.3
)
 
—

 
—

 
(10.5
)
Net (loss) income
 
$
16.9

 
$
36.9

 
$
0.1

 
$
(37.0
)
 
$
16.9

Total comprehensive income
 
$
16.9

 
$
36.9

 
$
0.1

 
$
(37.0
)
 
$
16.9


 
Supplemental Condensed Consolidating Statement of Operations
For the Three Months Ended June 30, 2011
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Revenues
 
 

 
 

 
 

 
 

 
 

Franchise revenues
 
$
0.6

 
$
97.7

 
$
0.2

 
$
—

 
$
98.6

Restaurant sales
 
—

 
134.3

 
0.4

 
—

 
134.6

Rental revenues
 
—

 
31.6

 
—

 
—

 
31.6

Financing revenues
 
—

 
3.5

 
—

 
—

 
3.5

Total revenue
 
0.6

 
267.1

 
0.6

 
—

 
268.3

Franchise expenses
 
0.5

 
25.7

 
—

 
—

 
26.2

Restaurant expenses
 
—

 
117.1

 
0.2

 
—

 
117.3

Rental expenses
 
—

 
24.6

 
—

 
—

 
24.6

Financing expenses
 
—

 
—

 
—

 
—

 
—

General and administrative
 
6.1

 
31.7

 
0.6

 
—

 
38.4

Interest expense
 
28.7

 
4.2

 
—

 
—

 
32.9

Impairment and closure
 
—

 
21.8

 
—

 
—

 
21.8

Amortization of intangible assets
 
—

 
3.1

 
—

 
—

 
3.1

Loss on disposition of assets
 
—

 
1.2

 
0.1

 
—

 
1.3

Loss on extinguishment of debt
 
0.9

 
—

 
—

 
—

 
0.9

Debt modification costs
 
—

 
—

 
—

 
—

 
—

Other (income) expense
 
30.4

 
43.8

 
(0.5
)
 
(73.7
)
 
—

Income (loss) before income taxes
 
(66.0
)
 
(6.1
)
 
0.2

 
73.7

 
1.8

Benefit (provision) for income taxes
 
13.8

 
(15.1
)
 
(0.1
)
 
—

 
(1.5
)
Net (loss) income
 
$
(52.2
)
 
$
(21.2
)
 
$
0.2

 
$
73.7

 
$
0.3

Total comprehensive income
 
$
(52.2
)
 
$
(21.2
)
 
$
0.2

 
$
73.7

 
$
0.3


(1) Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.


Supplemental Condensed Consolidating Statement of Operations
For the Six Months Ended June 30, 2012
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Revenues
 
 

 
 

 
 

 
 

 
 

Franchise revenues
 
$
1.3

 
$
209.1

 
$
0.5

 
$
—

 
$
210.9

Restaurant sales
 
—

 
194.7

 
—

 
—

 
194.7

Rental revenues
 
—

 
61.2

 
—

 
—

 
61.2

Financing revenues
 
—

 
8.2

 
—

 
—

 
8.3

Total revenue
 
1.3

 
473.2

 
0.5

 
—

 
475.0

Franchise expenses
 
1.2

 
52.8

 
—

 
—

 
54.0

Restaurant expenses
 
—

 
163.8

 
—

 
—

 
163.8

Rental expenses
 
—

 
48.8

 
—

 
—

 
48.9

Financing expenses
 
—

 
1.6

 
—

 
—

 
1.6

General and administrative
 
13.1

 
62.7

 
1.0

 
—

 
76.9

Interest expense
 
54.4

 
5.5

 
—

 
—

 
59.9

Impairment and closure
 
—

 
0.4

 
0.4

 
—

 
0.8

Amortization of intangible assets
 
—

 
6.2

 
—

 
—

 
6.2

Gain on disposition of assets
 
—

 
(15.2
)
 
(0.8
)
 
—

 
(16.0
)
Loss on extinguishment of debt
 
2.6

 
—

 
—

 
—

 
2.6

Intercompany dividend
 
(91.1
)
 
—

 
—

 
91.1

 
—

Income (loss) before income taxes
 
21.1

 
146.6

 
(0.1
)
 
(91.1
)
 
76.5

Benefit (provision) for income taxes
 
27.2

 
(55.3
)
 
—

 
—

 
(28.2
)
Net (loss) income
 
$
48.3

 
$
91.3

 
$
(0.1
)
 
$
(91.1
)
 
$
48.3

Total comprehensive income
 
$
48.2

 
$
91.4

 
$
(0.1
)
 
$
(91.1
)
 
$
48.4


 
Supplemental Condensed Consolidating Statement of Operations
For the Six Months Ended June 30, 2011
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Revenues
 
 

 
 

 
 

 
 

 
 

Franchise revenues
 
$
1.3

 
$
201.3

 
$
0.5

 
$
—

 
$
203.1

Restaurant sales
 
—

 
288.5

 
0.8

 
—

 
289.3

Rental revenues
 
—

 
63.8

 
—

 
—

 
63.8

Financing revenues
 
—

 
12.3

 
—

 
—

 
12.3

Total revenue
 
1.3

 
565.9

 
1.3

 
—

 
568.5

Franchise expenses
 
1.0

 
52.7

 
—

 
—

 
53.7

Restaurant expenses
 
—

 
248.6

 
0.4

 
—

 
249.0

Rental expenses
 
—

 
49.2

 
—

 
—

 
49.2

Financing expenses
 
—

 
5.6

 
—

 
—

 
5.6

General and administrative
 
13.6

 
61.6

 
1.2

 
—

 
76.4

Interest expense
 
61.0

 
8.1

 
—

 
—

 
69.2

Impairment and closure
 
—

 
26.7

 
0.1

 
—

 
26.8

Amortization of intangible assets
 
—

 
6.2

 
 
 
—

 
6.2

Gain on disposition of assets
 
—

 
(22.5
)
 
—

 
—

 
(22.5
)
Loss on extinguishment of debt
 
7.9

 
—

 
 
 
—

 
7.9

Debt modification costs
 
4.1

 
—

 
—

 
—

 
4.1

Other (income) expense
 
14.3

 
20.5

 
(0.9
)
 
(33.9
)
 
—

Income (loss) before income taxes
 
(100.6
)
 
109.2

 
0.5

 
33.9

 
43.0

Benefit (provision) for income taxes
 
33.4

 
(46.2
)
 
(0.2
)
 
—

 
(13.0
)
Net (loss) income
 
$
(67.2
)
 
$
63.0

 
$
0.3

 
$
33.9

 
$
30.0

Total comprehensive income
 
$
(67.2
)
 
$
63.1

 
$
0.3

 
$
33.9

 
$
30.0

(1) Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.
Supplemental Condensed Consolidating Statement of Cash Flows
For the Six Months Ended June 30, 2012
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Cash flows provided by (used in) operating activities
 
$
(64.9
)
 
$
101.1

 
$
0.2

 
—

 
$
36.4

Investing cash flows
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment
 
(3.0
)
 
(7.7
)
 
—

 


 
(10.7
)
Principal receipts from long-term receivables
 
—

 
6.6

 
—

 
—

 
6.6

Proceeds from sale of assets
 
—

 
21.5

 
—

 
—

 
21.5

Other
 
—

 
(0.8
)
 
—

 
—

 
(0.8
)
Cash flows provided by (used in) investing activities
 
(3.0
)
 
19.6

 
—

 
—

 
16.6

Financing cash flows
 
 
 
 
 
 
 
 
 
 
Revolving credit borrowings
 
35.0

 
—

 
—

 
—

 
35.0

Revolving credit repayments
 
(35.0
)
 
—

 
—

 
—

 
(35.0
)
Payment of debt
 
(76.0
)
 
(6.1
)
 
—

 
—

 
(82.2
)
Payment of debt issuance costs
 
—

 
—

 
—

 
—

 
—

Purchase of common stock
 
—

 
—

 
—

 
—

 
—

Restricted cash
 
—

 
(3.8
)
 
—

 
—

 
(3.8
)
Other
 
3.9

 
0.7

 
—

 
—

 
4.6

Intercompany transfers
 
130.1

 
(130.0
)
 
(0.1
)
 
—

 
—

Cash flows provided by (used in) financing activities
 
58.0

 
(139.2
)
 
(0.1
)
 
—

 
(81.3
)
Net change
 
(9.9
)
 
(18.5
)
 
0.1

 
—

 
(28.3
)
Beginning cash and equivalents
 
9.9

 
50.4

 
0.4

 
—

 
60.7

Ending cash and equivalents
 
$
—

 
$
31.9

 
$
0.5

 
—

 
$
32.4


 
Supplemental Condensed Consolidating Statement of Cash Flows
For the Six Months Ended June 30, 2011
(In millions(1))
 
 
Parent
 
Combined
Guarantor
Subsidiaries
 
Combined
Non-guarantor
Subsidiaries
 
Eliminations and
Reclassification
 
Consolidated
Cash flows provided by (used in) operating activities
 
$
(79.7
)
 
$
127.4

 
$
0.5

 
—

 
$
48.2

Investing cash flows
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment
 
(4.0
)
 
(9.5
)
 
—

 
—

 
(13.5
)
Principal receipts from long-term receivables
 
—

 
7.1

 
—

 
—

 
7.1

Proceeds from sale of assets
 
—

 
55.5

 
—

 
—

 
55.5

Other
 
—

 
(0.6
)
 
—

 
—

 
(0.6
)
Cash flows provided by (used in) investing activities
 
(4.0
)
 
52.5

 
—

 
—

 
48.5

Financing cash flows
 
 
 
 
 
 
 
 
 
 
Revolving credit borrowings
 
25.0

 
—

 
—

 
—

 
25.0

Revolving credit repayments
 
(25.0
)
 
 
 
 
 
 
 
(25.0
)
Payment of debt
 
(153.4
)
 
(6.8
)
 
—

 
—

 
(160.2
)
Payment of debt issuance costs
 
(12.3
)
 
—

 
—

 
—

 
(12.3
)
Restricted cash
 
—

 
1.5

 
—

 
—

 
1.5

Other
 
6.2

 
0.3

 
—

 
—

 
6.5

Intercompany transfers
 
226.6

 
(225.0
)
 
(1.6
)
 
—

 
—

Cash flows provided by (used in) financing activities
 
67.1

 
(230.0
)
 
(1.6
)
 
—

 
(164.5
)
Net change
 
(16.6
)
 
(50.1
)
 
(1.1
)
 
—

 
(67.8
)
Beginning cash and equivalents
 
23.4

 
77.3

 
1.6

 
—

 
102.3

Ending cash and equivalents
 
$
6.8

 
$
27.2

 
$
0.5

 
—

 
$
34.5


(1) Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.