IHOP 2010 Annual Report Download - page 83

The following table represents the principal receipts on various receivables due from our
franchisees as of December 31, 2010:
Principal Receipts Due By Period
2011 2012 2013 2014 2015 Thereafter Total
(In millions)
Equipment leases(1) ................. $ 6.9 $ 6.9 $ 7.1 $ 7.5 $ 7.9 $102.7 $139.0
Direct financing leases(2) .............. 4.6 5.4 6.3 7.1 8.0 73.2 104.6
Franchise notes and other(3) ........... 2.4 1.9 1.3 0.8 0.6 0.4 7.4
Total ............................. $13.9 $14.2 $14.7 $15.4 $16.5 $176.3 $251.0
(1) Equipment lease receivables extend through the year 2029.
(2) Direct financing lease receivables extend through the year 2024.
(3) Franchise note receivables extend through the year 2018.
Financing Activities
Financing activities used net cash of $212.8 million during 2010. Cash used in financing activities
primarily consisted of $1,777.9 million in repayments of long-term debt, payment of debt issuance costs
of $57.6 million, redemption of Series A Stock of $190.0 million and $26.1 million in dividend payments
(including $7.6 million of redemption premiums) on Series A Stock. Of the long-term debt repayments,
$1,641.2 million was related to the October 2010 Refinancing (including tender premiums),
$61.8 million related to early retirement of securitization debt with excess cash prior to the October
2010 Refinancing, $56.0 million of debt retirements subsequent to the October 2010 Refinancing and
$35.0 million related to scheduled repayments of debt (prior to the October 2010 Refinancing), capital
leases and financing obligations. Cash provided by financing activities primarily came from borrowing
$900 million under the Term Facility, issuing $825 million of 9.5% Senior Notes and the release of
$119.1 million in restricted cash related to the old securitization debt.
Share Repurchases and Dividends
There is currently no authorized or publicly announced plan to repurchase our common stock. We
do, from time to time, repurchase shares owned and tendered by employees to satisfy tax withholding
obligations on the vesting of restricted stock awards. Such shares are purchased at the closing price of
our common stock on the vesting date.
Currently, we do not pay a dividend on our common stock. 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.
Off-Balance Sheet Arrangements
As of December 31, 2010, we had no off-balance sheet arrangements, as defined in Item 303(a)(4)
of SEC Regulation S-K.
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