IHOP 2010 Annual Report Download - page 139

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
15. Preferred Stock and Stockholders’ Equity (Continued)
the shares of Series B Convertible Preferred Stock issued to Chilton and the shares of common stock
issuable upon conversion.
Share Repurchase Program
In January 2003, our Board of Directors authorized a program to repurchase shares of the
Company’s common stock. The Company has repurchased 6.3 million shares of its common stock since
the inception of the program at a total cost of $280.0 million until the cancellation of the authorization
to repurchase any additional shares under this program by the Board of Directors in February 2009.
Dividends
The Company’s most recent quarterly dividend of $0.25 per common share was paid in December
2008. In December 2008, the Board of Directors suspended the payment of the quarterly cash dividend
to common stockholders for the foreseeable future as part of actions the Company was taking to
maximize its financial flexibility. There were no dividends declared or paid on common shares in 2010
or 2009. Under our current debt agreements, we are restricted from paying dividends on common stock
until certain financial ratios are achieved. Those ratios have not been achieved as of December 31,
2010. At such time as those financial ratios are achieved, dividend payments on common stock may be
resumed at the discretion of the Board of Directors after consideration of the Company’s earnings,
financial condition, cash requirements, future prospects and other factors.
16. Other Comprehensive Income (Loss)
The components of comprehensive income (loss), net of taxes, are as follows:
Year Ended December 31,
2010 2009 2008
(in millions)
Net income (loss) ............................... $(2.8) $31.4 $(154.4)
Other comprehensive income (net of tax):
Interest rate swap ............................. 20.5 8.5 7.7
Temporary decline in available-for-sale securities ....... — 0.1 (0.4)
Total comprehensive income (loss) ................... $17.7 $40.0 $(147.1)
The amount of income tax benefit allocated to the interest rate swap was $9.5 million, $5.4 million
and $4.9 million for the years ended December 31, 2010, 2009 and 2008, respectively. The amount of
income tax benefit allocated to the temporary decline in available-for-sale securities was $0.1 million
for the year ended December 31, 2008.
The accumulated comprehensive loss as of December 31, 2010 is comprised of $0.3 million (net of
tax) related to a temporary decline in available-for-sale securities. The accumulated comprehensive loss
of $20.8 million (net of tax) as of December 31, 2009 is comprised of $20.5 million related to a
terminated interest rate swap and $0.3 million related to a temporary decline in available-for-sale
securities. The entire loss related to an interest rate swap designated as a cash flow hedge has
reclassified into earnings as the related debt has been retired.
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