IHOP 2012 Annual Report Download - page 101

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83
expected to be recorded as a sale in accordance with U.S. GAAP and the net book value of those properties will be removed from
the Company's books, along with a ratable portion of the remaining financing obligation.
As of December 31, 2012, the Company's continuing involvement with 146 of the 181 Properties ended by assignment of
the lease obligation to a qualified franchisee or a release from the lessor. In accordance with the accounting described above, the
transactions related to these properties have been recorded as a sale with property and equipment and financing obligations each
reduced by approximately $261.3 million.
As of December 31, 2012, future minimum lease payments under financing obligations during the initial terms of the leases
related to the sale-leaseback transactions are as follows:
Fiscal Years (In millions)
2013.................................................................................................................................................................. $ 5.5
2014.................................................................................................................................................................. 6.1
2015(1) .............................................................................................................................................................. 6.6
2016.................................................................................................................................................................. 6.1
2017.................................................................................................................................................................. 5.6
Thereafter......................................................................................................................................................... 104.2
Total minimum lease payments ....................................................................................................................... 134.1
Less interest ..................................................................................................................................................... (82.0)
Total financing obligations .............................................................................................................................. 52.1
Less current portion(2)...................................................................................................................................................... (0.1)
Long-term financing obligations...................................................................................................................... $ 52.0
___________________________________
(1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2015.
(2) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet.
10. Leases
The Company leases the majority of all IHOP franchise restaurants. The restaurants are subleased to IHOP franchisees or in
a few instances operated by the Company. These noncancelable leases and subleases consist primarily of land, buildings and
improvements.
The following is the Company's net investment in direct financing lease receivables:
December 31,
2012 2011
(In millions)
Total minimum rents receivable................................................................................................. $ 163.4 $ 180.0
Less unearned income................................................................................................................. (68.3)(80.0)
Net investment in direct financing lease receivables.................................................................. 95.1 100.0
Less current portion.................................................................................................................... (6.2)(5.4)
Long-term direct financing lease receivables............................................................................. $ 88.9 $ 94.6
Contingent rental income, which is the amount above and beyond base rent, for the years ended December 31, 2012, 2011
and 2010 was $12.5 million, $13.1 million and $14.4 million, respectively.
DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
9. Financing Obligations (Continued)