Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows:

	Year Ended December 31,
	2019			2018			2017
Provision (benefit) for income taxes:	(In millions)
Current
Federal	$	31.2		$	33.6		$	42.6
State	6.5			6.4			5.1
Foreign	1.9			2.1			2.9
	39.6			42.1			50.6
Deferred
Federal	(3.8		)	(7.8		)	(131.0		)
State	(1.7		)	(4.0		)	(5.1		)
	(5.5		)	(11.8		)	(136.1		)
Provision (benefit) for income taxes	$	34.1		$	30.3		$	(85.6	)

Schedule of Effective Income Tax Rate Reconciliation

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

	Year Ended December 31,
	2019		2018		2017
Statutory federal income tax rate	21.0	%	21.0	%	35.0	%
Non-deductibility of goodwill impairment	—		—		(29.3	)
Change in federal tax rate	—		—		15.5
State and other taxes, net of federal tax benefit	2.8		3.6		0.4
Change in unrecognized tax benefits	1.8		3.3		(0.7	)
Change in valuation allowance	0.5		0.4		0.3
Domestic production activity deduction	—		—		0.3
Changes in tax rates and state tax laws	(0.5	)	(1.6	)	(0.3	)
Change in accounting for excess tax deficiencies/benefits	(0.6	)	0.1		(0.5	)
General business credits	(1.3	)	(0.2	)	0.0
Other	0.9		0.8		(0.7	)
Effective tax rate	24.6	%	27.4	%	20.0	%

Schedule of Deferred Tax Assets and Liabilities

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

	2019			2018
	(In millions)
Employee compensation	$	9.2		$	9.0
Revenue recognition	32.8			34.3
Other	5.9			16.8
Deferred tax assets	47.9			60.1
Valuation allowance	(1.5		)	(0.4		)
Total deferred tax assets after valuation allowance	46.4			59.7
Recognition of franchise and equipment sales	(13.7		)	(16.8		)
Capitalization and depreciation (1)	(130.8		)	(139.2		)
Acquisition financing costs	—			(0.6		)
Basis of property and equipment	—			(8.1		)
Other	(0.4		)	(0.8		)
Deferred tax liabilities	(144.9		)	(165.5		)
Net deferred tax liabilities	$	(98.5	)	$	(105.8	)

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⁽¹⁾ 

Primarily related to the 2007 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,
	2019			2018			2017
Unrecognized tax benefit as of January 1	$	5.2		$	5.9		$	3.9
Changes for tax positions of prior years	2.1			3.8			2.8
Increases for tax positions related to the current year	0.5			0.4			0.6
Decreases relating to settlements and lapsing of statutes of limitations	(0.2		)	(4.9		)	(1.4		)
Unrecognized tax benefit as of December 31	$	7.6		$	5.2		$	5.9