IHOP 2011 Annual Report Download - page 93

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
3. Receivables (Continued)
75
Allowance for Doubtful Accounts
Balance at December 31, 2008
Provision
Charge-offs
Recoveries
Balance at December 31, 2009
Provision
Charge-offs
Recoveries
Balance at December 31, 2010
Provision
Charge-offs
Recoveries
Balance at December 31, 2011
(In millions)
$ 2.9
1.7
(1.3)
0.1
3.4
3.4
(0.8)
0.2
6.2
0.4
(3.1)
0.1
$ 3.6
As of December 31, 2011, approximately $0.2 million of the allowance for doubtful accounts related to financing receivables.
4. Assets Held For Sale
The Company classifies assets as held for sale and ceases the depreciation of the assets when there is a plan for disposal of
the assets and those assets meet the held for sale criteria as defined in U.S. GAAP. Reacquired franchises, property and equipment
and other assets held for sale are accounted for on the specific identification basis.
Reacquired franchises
For reacquired franchises, the Company records the value of the reacquired franchise and equipment at the lower of (1) the
sum of the franchise receivables and costs of reacquisition, or (2) the estimated net realizable value at the reacquisition date.
Pending the sale of such franchise, the carrying value is amortized ratably over the remaining life of the asset or lease, and the
estimated net realizable value is evaluated in conjunction with our impairment evaluation of long-lived assets. There were no
reacquired franchises and equipment included in assets held for sale at December 31, 2011; there was $332,000 of reacquired
franchises and equipment included in assets held for sale at December 31, 2010.
Property and equipment
At December 31, 2010, assets held for sale primarily consisted of assets of 36 Applebee's company-operated restaurants in
the St. Louis market area of Missouri, 30 Applebee's company-operated restaurants in the Washington, D.C. area, three parcels of
land on which refranchised Applebee's formerly company-operated restaurants are situated, three parcels of land previously
intended for future restaurant development and one IHOP restaurant held for refranchising.
The following table summarizes the changes in the balance of assets held for sale during fiscal 2011:
Balance December 31, 2010
Assets transferred to held for sale
Assets sold
Assets refranchised
Other
Balance December 31, 2011
(In millions)
$ 37.9
43.3
(71.2)
(0.7)
0.1
$ 9.4
During the twelve months ended December 31, 2011, the Company entered into two agreements for the refranchising of
Applebee's company-operated restaurants and sale of related restaurant assets. The first agreement related to 66 restaurants located
in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont and parts of New York and the second agreement related to 17
restaurants located in a six-state market area geographically centered around Memphis, Tennessee. The Company also entered
into an agreement for the sale of the land and building of a single Applebee's company-operated restaurant. Accordingly, $43.3
million, representing the net book value of the assets related to these restaurants, was transferred to assets held for sale. One IHOP