IHOP 2010 Annual Report Download - page 96

DineEquity, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2010 2009 2008
Cash flows from operating activities
Net (loss) income ............................................... $ (2,788) $ 31,409 $(154,459)
Adjustments to reconcile net (loss) income to cash flows provided by operating activities
Depreciation and amortization ..................................... 61,427 65,379 72,934
Non-cash interest expense ........................................ 34,379 39,422 39,083
Loss (gain) on extinguishment of debt and temporary equity .................. 107,003 (45,678) (15,242)
Impairment and closure charges .................................... 3,482 105,094 240,630
Deferred income taxes .......................................... (15,484) (19,875) (65,226)
Non-cash stock-based compensation expense ............................ 13,085 10,710 12,089
Tax benefit from stock-based compensation ............................. 2,692 531 1,864
Excess tax benefit from stock options exercised ........................... (4,775) (48) (315)
(Gain) loss on disposition of assets .................................. (13,573) (6,947) 259
Other ..................................................... 5,430 (5,816) 1,172
Changes in operating assets and liabilities
Receivables ................................................ 3,736 11,607 (2,441)
Inventories ................................................ (263) (1,474) 182
Prepaid expenses ............................................. (9,148) (15,947) (7,418)
Current income tax receivables and payables ........................... (27,703) 5,001 20,456
Accounts payable ............................................ 27 (14,867) (23,749)
Accrued employee compensation and benefits .......................... (5,000) (8,119) (11,609)
Gift card liability ............................................ 19,507 7,180 18,480
Other accrued expenses ........................................ 7,248 286 (15,851)
Cash flows provided by operating activities ........................... 179,282 157,848 110,839
Cash flows from investing activities
Additions to property and equipment ................................. (18,677) (15,372) (31,765)
Reductions (additions) to long-term receivables ........................... 4,772 2,528 (4,743)
Acquisition of business, net of cash acquired ............................ — — (10,261)
Collateral released by captive insurance subsidiary ......................... 781 1,549 4,559
Proceeds from sale of property and equipment and assets held for sale ........... 51,642 15,777 61,137
Principal receipts from notes and equipment contracts receivable ............... 14,680 15,025 15,797
Other ..................................................... 306 (672) 471
Cash flows provided by investing activities ........................... 53,504 18,835 35,195
Cash flows from financing activities
Proceeds from issuance of long-term debt .............................. 1,725,000 10,000 35,000
Restricted cash related to securitization ................................ 119,133 15,878 49,216
Proceeds from financing obligations .................................. — — 370,502
Repayment of long-term debt (including tender premiums) ................... (1,777,946) (173,777) (421,325)
Redemption of temporary equity .................................... (190,000) — —
Payment of debt issuance costs ..................................... (57,602) (20,300) (48,902)
Principal payments on capital lease and financing obligations .................. (16,118) (16,160) (9,854)
Dividends paid (including temporary equity redemption premiums) .............. (26,117) (24,091) (33,362)
Repurchase of restricted stock ..................................... (1,884) (605) (540)
Proceeds from stock options exercised ................................ 7,968 324 989
Excess tax benefit from stock options exercised ........................... 4,775 48 315
Other ..................................................... — (129) (468)
Cash flows used in financing activities .............................. (212,791) (208,812) (58,429)
Net change in cash and cash equivalents ............................... 19,995 (32,129) 87,605
Cash and cash equivalents at beginning of year ........................... 82,314 114,443 26,838
Cash and cash equivalents at end of year ............................... $ 102,309 $ 82,314 $ 114,443
Supplemental disclosures
Interest paid ................................................. $ 141,139 $ 166,361 $ 194,763
Income taxes paid ............................................. $ 33,389 $ 31,245 $ 40,931
See the accompanying notes to the consolidated financial statements.
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