Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 was as follows:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Provision (benefit) for income taxes:
Current
Federal	$	48.5		$	77.4		$	13.2
State	2.1			1.9			1.0
Foreign	2.4			1.8			1.8
	53.0			81.1			16.0
Deferred
Federal	(13.5		)	(12.2		)	11.4
State	(0.9		)	(1.7		)	2.4
	(14.4		)	(13.9		)	13.8
Provision for income taxes	$	38.6		$	67.2		$	29.8

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the expected federal income tax rates as follows:

	Year Ended December 31,
	2013		2012		2011
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State and other taxes, net of federal tax benefit	2.9		2.8		3.7
Change in unrecognized tax benefits	1.4		(0.2	)	(4.0	)
Change in valuation allowance	(2.7	)	0.7		1.7
State adjustments including audits and settlements	(1.1	)	0.2		0.2
Compensation related tax credits, net of deduction offsets	(0.6	)	(0.9	)	(4.9	)
Changes in tax rates and state tax laws	—		(3.2	)	(3.9	)
Kansas High Performance Incentive Program credits	—		—		0.5
Other	—		0.1		0.1
Effective tax rate	34.9	%	34.5	%	28.4	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets (liabilities) consisted of the following components:

	2013			2012
	(In millions)
Differences in capitalization and depreciation and amortization of reacquired franchises and equipment	$	4.8		$	4.9
Differences in acquisition financing costs	1.8			1.8
Employee compensation	15.0			15.2
Deferred gain on sale of assets	6.3			5.9
Book/tax difference in revenue recognition	29.8			22.2
Other	35.0			35.4
Deferred tax assets	92.7			85.4
Valuation allowance	(1.1		)	(4.1		)
Total deferred tax assets after valuation allowance	91.6			81.3
Differences between financial and tax accounting in the recognition of franchise and equipment sales	(51.2		)	(55.1		)
Differences in capitalization and depreciation (1)	(301.1		)	(310.2		)
Differences in acquisition financing costs	(7.1		)	(7.7		)
Book/tax difference in revenue recognition	(19.5		)	(19.5		)
Differences between book and tax basis of property and equipment	(10.1		)	(9.8		)
Other	(20.3		)	(19.4		)
Deferred tax liabilities	(409.3		)	(421.7		)
Net deferred tax liabilities	$	(317.7	)	$	(340.4	)
Net deferred tax asset—current	$	24.2		$	22.3
Valuation allowance—current	(0.3		)	(0.5		)
Net deferred tax asset—current	23.9			21.8
Deferred tax liability—non-current	(340.8		)	(358.6		)
Valuation allowance—non-current	(0.8		)	(3.6		)
Net deferred tax liability—non-current	(341.6		)	(362.2		)
Net deferred tax liabilities	$	(317.7	)	$	(340.4	)

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⁽¹⁾  Primarily related to the Applebee's acquisition.

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	(In millions)
Unrecognized tax benefit as of December 31, 2011	$	8.2
Change as a result of prior year tax positions	0.8
Change as a result of current year tax positions	0.2
Decreases relating to settlements with taxing authorities	(0.9		)
Decreases as a result of a lapse of the statute of limitations	(1.6		)
Unrecognized tax benefit as of December 31, 2012	6.7
Change as a result of prior year tax positions	0.8
Decreases relating to settlements with taxing authorities	(4.7		)
Decreases as a result of a lapse of the statute of limitations	(0.1		)
Unrecognized tax benefit as of December 31, 2013	$	2.7