IHOP 2008 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2008 IHOP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
3. Business Acquisition (Continued)
transaction value (including direct transaction costs and expenses) was approximately $2.0 billion. The
following table summarizes the components of the Applebee’s purchase price:
(In thousands)
Cash consideration ............................................. $1,948,093
Direct transaction costs ......................................... 16,444
Total purchase price ............................................ $1,964,537
The Company has accounted for the Applebee’s acquisition using the purchase method and,
accordingly, the results of operations related to this acquisition have been included in the consolidated
results of the Company since the acquisition date
Purchase Price Allocation
The purchase price for this acquisition was allocated to tangible and intangible assets acquired and
liabilities assumed based on their estimated fair values at the acquisition date of November 29, 2007.
The following table presents the preliminary purchase allocation as estimated for the Company’s
Form 10-K for the Year ended December 31, 2007 and final purchase price allocation as adjusted
during the allowable allocation period:
Preliminary Final
Allocation Allocation
(In thousands)
Short term-investments ................................. $ 300 $ 300
Receivables .......................................... 47,117 46,922
Assets held for sale .................................... 15,192 4,084
Inventories .......................................... 13,396 13,311
Prepaid income taxes ................................... 2,184 2,184
Prepaid expenses ...................................... 40,790 40,844
Deferred income taxes (short-term) ........................ 11,648 20,128
Property and equipment ................................ 890,623 759,795
Tradename .......................................... 790,000 790,000
Franchise agreements .................................. 200,000 200,000
Goodwill ............................................ 719,961 811,508
Other intangible assets .................................. 22,589 21,267
Restricted assets related to captive insurance subsidiary .......... 10,863 10,863
Other assets ......................................... 11,889 4,812
Accounts payable ..................................... (30,165) (29,980)
Other accrued expenses ................................. (149,997) (143,963)
Capital lease obligations ................................ (3,747) (3,162)
Loss reserves related to captive insurance subsidiary ............ (4,422) (4,422)
Debt ............................................... (120,994) (120,994)
Deferred income taxes (long-term) ......................... (479,453) (432,966)
Other liabilities ....................................... (34,274) (37,031)
Net cash paid for acquisition ............................. $1,953,500 $1,953,500
90