IHOP 2008 Annual Report Download - page 89

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DineEquity, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2008 2007 2006
Cash flows from operating activities
Net (loss) income ............................................. $(154,459) $ (480) $ 44,553
Adjustments to reconcile net (loss) income to cash flows provided by operating activities
Depreciation and amortization ................................... 112,017 31,829 20,050
(Gain) loss on extinguishment of debt ............................... (15,242) 2,223 —
Loss on derivative financial instrument .............................. — 62,131 —
Impairment and closure charges .................................. 240,630 4,381 43
Deferred income taxes ........................................ (65,226) (31,324) 6,304
Stock-based compensation expense ................................. 12,089 6,958 3,911
Tax benefit from stock-based compensation ........................... 1,864 3,476 1,720
Excess tax benefit from stock options exercised ......................... (315) (2,693) (1,720)
Loss (gain) on disposition of assets ................................. 259 (98) —
Changes in operating assets and liabilities
Receivables .............................................. (2,441) (22,479) (2,524)
Inventories .............................................. 182 512 141
Prepaid expenses ........................................... (146) (17,147) (4,975)
Accounts payable .......................................... (23,749) 37,266 (394)
Accrued employee compensation and benefits ........................ (11,609) (21,868) 2,614
Deferred revenues .......................................... 18,480 43,685 —
Other accrued expenses ...................................... (2,152) 13,553 (3,422)
Other .................................................. 657 (3,602) (1,442)
Cash flows provided by operating activities ......................... 110,839 106,323 64,859
Cash flows from investing activities
Additions to property and equipment ............................... (31,765) (11,871) (9,426)
(Additions) reductions to long-term receivables ......................... (4,743) 1,538 (159)
Acquisition of business, net of cash acquired ........................... (10,261) (1,943,567) —
Collateral released by captive insurance subsidiary ....................... 4,559 345 —
Proceeds from sale of property and equipment ......................... 61,137 870 —
Principal receipts from notes and equipment contracts receivable .............. 15,797 16,617 17,781
Reductions (additions) to assets held for sale .......................... 476 (688) (594)
Other ................................................... (5) (636) 1,694
Cash flows provided by (used in) investing activities ................... 35,195 (1,937,392) 9,296
Cash flows from financing activities
Proceeds from issuance of long-term debt ............................ 35,000 2,296,216 —
Proceeds from financing obligations ................................ 370,502 — —
Repayment of long-term debt .................................... (421,325) (268,199) (19,568)
Repayment of financing obligations ................................ (3,975) — —
Principal payments on capital lease obligations ......................... (5,879) (5,364) (4,088)
Dividends paid ............................................. (33,362) (17,293) (18,138)
(Payment of costs) issuance of preferred stock ......................... (1,500) 222,800 —
Reissuance (purchase) of treasury stock, net ........................... 1,135 (76,050) (42,695)
Repurchase of restricted stock .................................... (540) — —
Proceeds from stock options exercised ............................... 989 8,928 5,944
Excess tax benefit from stock options exercised ......................... 315 2,693 1,720
Payment of debt issuance costs ................................... (48,902) (138,021) (925)
Payment of early debt extinguishment costs ........................... (103) (1,219) —
Restricted cash related to securitization .............................. 49,216 (186,100) —
Cash flows (used in) provided by financing activities ................... (58,429) 1,838,391 (77,750)
Net change in cash and cash equivalents ............................. 87,605 7,322 (3,595)
Cash and cash equivalents at beginning of year ......................... 26,838 19,516 23,111
Cash and cash equivalents at end of year ............................. $114,443 $ 26,838 $ 19,516
Supplemental disclosures
Interest paid ............................................... $194,763 $ 31,331 $ 29,759
Income taxes paid ........................................... $ 40,931 $ 25,712 $ 35,142
Capital lease obligations incurred .................................. $ 390 $ — $ 2,329
See the accompanying notes to the consolidated financial statements.
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