IHOP 2012 Annual Report Download - page 110

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
92
17. Employee Benefit Plans
401(k) Savings and Investment Plan
Effective January 1, 2009, the Company amended the DineEquity, Inc. 401(k) Plan to (i) include salaried and hourly employees
of Applebee's, and (ii) modify the Company matching formula. As amended, the Company matches 100% of the first three percent
of the employee's eligible compensation deferral and 50% of the next two percent of the employee's eligible compensation deferral.
All contributions under this plan vest immediately. DineEquity common stock is not an investment option for employees in the
401(k) plan, other than shares transferred from a prior employee stock ownership plan. Substantially all of the administrative cost
of the 401(k) plan is borne by the Company. The Company's contribution was $2.1 million, $2.4 million and $3.0 million for the
years ended December 31, 2012, 2011 and 2010, respectively.
18. Income Taxes
The provision (benefit) for income taxes for the years ended December 31, 2012, 2011 and 2010 was as follows:
Year Ended December 31,
2012 2011 2010
(In millions)
Provision (benefit) for income taxes:
Current ............................................................................................................
Federal........................................................................................................ $ 77.4 $ 13.2 $ 6.2
State and foreign......................................................................................... 3.7 2.8 (0.6)
81.1 16.0 5.6
Deferred
Federal........................................................................................................ (12.2) 11.4 (12.8)
State............................................................................................................ (1.7) 2.4 (2.1)
(13.9) 13.8 (14.9)
Provision (benefit) for income taxes............................................................... $ 67.2 $ 29.8 $ (9.3)
The provision (benefit) for income taxes differs from the expected federal income tax rates as follows:
2012 2011 2010
Statutory federal income tax rate .................................................................... 35.0% 35.0% (35.0)%
State and other taxes, net of federal tax benefit .............................................. 2.8 3.7 (0.4)
Change in unrecognized tax benefits .............................................................. (0.2) (4.0) (28.1)
Change in valuation allowance ....................................................................... 0.7 1.7 (1.5)
State adjustments including audits and settlements........................................ 0.2 0.2 (0.6)
Compensation related tax credits, net of deduction offsets............................. (0.9) (4.9) (46.0)
Changes in tax rates and state tax laws........................................................... (3.2) (3.9) —
Kansas High Performance Incentive Program credits .................................... — 0.5 —
Goodwill intangibles adjustment .................................................................... — — 27.0
Non-deductible preferred stock issuance costs ............................................... — — 8.5
Other................................................................................................................ 0.1 0.1 (0.8)
Effective tax rate............................................................................................. 34.5% 28.4% (76.9)%