IHOP 2012 Annual Report Download - page 102

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
10. Leases (Continued)
84
The following is the Company's net investment in equipment leases receivable:
December 31,
2012 2011
(In millions)
Total minimum leases receivable................................................................................................ $ 209.3 $ 234.2
Less unearned income................................................................................................................. (86.9) (102.7)
Net investment in equipment leases receivables ........................................................................ 122.4 131.5
Less current portion.................................................................................................................... (6.8) (6.5)
Long-term equipment leases receivable ..................................................................................... $ 115.6 $ 125.0
The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2012:
Capital
Leases Operating
Leases
(In millions)
2013 ........................................................................................................................................ $ 24.8 $ 74.8
2014 ........................................................................................................................................ 24.9 74.4
2015 ........................................................................................................................................ 24.8 73.7
2016 ........................................................................................................................................ 23.9 72.5
2017 ........................................................................................................................................ 22.5 71.5
Thereafter................................................................................................................................ 96.7 473.1
Total minimum lease payments.............................................................................................. 217.6 $ 840.0
Less interest ............................................................................................................................ (82.4)
Capital lease obligations......................................................................................................... 135.2
Less current portion(1) ......................................................................................................................................... (10.8)
Long-term capital lease obligations........................................................................................ $ 124.4
(1) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet.
The asset cost and carrying amount on company-owned property leased at December 31, 2012 was $90.1 million and $67.8
million, respectively. The asset cost and carrying amount on company-owned property leased at December 31, 2011, was $89.8
million and $69.5 million, respectively. The asset cost and carrying amounts represent the land and building asset values and net
book values on sites leased to franchisees.
The minimum future lease payments shown above have not been reduced by the following future minimum rents to be received
on noncancelable subleases and leases of owned property at December 31, 2012:
Direct
Financing
Leases Operating
Leases
(In millions)
2013 ............................................................................................................................................ $ 18.2 $ 95.8
2014 ............................................................................................................................................ 18.2 95.6
2015 ............................................................................................................................................ 18.0 96.1
2016 ............................................................................................................................................ 17.8 95.7
2017 ............................................................................................................................................ 17.9 95.5
Thereafter.................................................................................................................................... 73.3 741.4
Total minimum rents receivable................................................................................................. $ 163.4 $ 1,220.1
The Company has noncancelable leases, expiring at various dates through 2032, which require payment of contingent rents
based upon a percentage of sales of the related restaurant as well as property taxes, insurance and other charges. Subleases to
franchisees of properties under such leases are generally for the full term of the lease obligation at rents that include the Company's
obligations for property taxes, insurance, contingent rents and other charges. Generally, the noncancelable leases include renewal
options. Contingent rent expense for all noncancelable leases for the years ended December 31, 2012, 2011 and 2010 was $2.7
million, $2.8 million and $3.4 million, respectively. Minimum rent expense for all noncancelable operating leases for the years
ended December 31, 2012, 2011 and 2010 was $78.0 million, $81.8 million and $87.2 million, respectively.