Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 was as follows:

	Year Ended December 31,
	2014			2013			2012
	(In millions)
Provision (benefit) for income taxes:
Current
Federal	$	33.2		$	48.5		$	77.4
State	3.6			2.1			1.9
Foreign	2.7			2.4			1.8
	39.5			53.0			81.1
Deferred
Federal	(22.1		)	(13.5		)	(12.2		)
State	(2.3		)	(0.9		)	(1.7		)
	(24.4		)	(14.4		)	(13.9		)
Provision for income taxes	$	15.1		$	38.6		$	67.2

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,
	2014		2013		2012
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State and other taxes, net of federal tax benefit	2.4		2.9		2.8
Change in unrecognized tax benefits	2.4		1.4		(0.2	)
Change in valuation allowance	—		(2.7	)	0.7
Domestic production activity deduction	(6.0	)	—		—
Research and experimentation tax credit	(3.4	)	—		—
State adjustments including audits and settlements	(1.1	)	(1.1	)	0.2
Compensation related tax credits, net of deduction offsets	(0.8	)	(0.6	)	(0.9	)
Changes in tax rates and state tax laws	—		—		(3.2	)
Other	0.8		—		0.1
Effective tax rate	29.3	%	34.9	%	34.5	%

Schedule of Deferred Tax Assets and Liabilities

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

	2014			2013
	(In millions)
Differences in capitalization and depreciation and amortization of reacquired franchises and equipment	$	4.8		$	4.8
Differences in acquisition financing costs	1.8			1.8
Employee compensation	14.4			15.0
Deferred gain on sale of assets	6.5			6.3
Book/tax difference in revenue recognition	39.6			29.8
Other	35.9			35.0
Deferred tax assets	103.0			92.7
Valuation allowance	(1.1		)	(1.1		)
Total deferred tax assets after valuation allowance	101.9			91.6
Differences between financial and tax accounting in the recognition of franchise and equipment sales	(48.0		)	(51.2		)
Differences in capitalization and depreciation (1)	(294.6		)	(301.1		)
Differences in acquisition financing costs	—			(7.1		)
Book/tax difference in revenue recognition	(15.6		)	(19.5		)
Differences between book and tax basis of property and equipment	(11.4		)	(10.1		)
Other	(20.5		)	(20.3		)
Deferred tax liabilities	(390.1		)	(409.3		)
Net deferred tax liabilities	$	(288.2	)	$	(317.7	)
Net deferred tax asset—current	$	31.2		$	24.2
Valuation allowance—current	(0.3		)	(0.3		)
Net deferred tax asset—current	30.9			23.9
Deferred tax liability—non-current	(318.3		)	(340.8		)
Valuation allowance—non-current	(0.8		)	(0.8		)
Net deferred tax liability—non-current	(319.1		)	(341.6		)
Net deferred tax liabilities	$	(288.2	)	$	(317.7	)

_____________________________________

⁽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:

	Year Ended December 31,
	2014			2013			2012
Unrecognized tax benefit as of January 1	$	2.7		$	6.7		$	8.2
Changes for tax positions of prior years	1.2			0.8			0.8
Increases for tax positions related to the current year	0.1			—			0.2
Decreases relating to settlements and lapsing of statutes of limitations	(0.6		)	(4.8		)	(2.5		)
Unrecognized tax benefit as of December 31	$	3.4		$	2.7		$	6.7