IHOP 2012 Annual Report Download - page 54

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36
We incurred significant charges in connection with the refinancing of debt in October 2010. While we have retired more than
$200 million in debt each year subsequent to that refinancing, the loss on debt extinguishment has been substantially smaller than
the amount recorded in 2010. This decrease is because discount and deferred issuance costs associated with our refinanced debt
that are written off on a pro rata basis as debt is retired are substantially less than those associated with our debt instruments that
were extinguished in the 2010 refinancing. Therefore, while we may continue to dedicate a portion of excess cash flow towards
early debt retirement, we do not anticipate recognizing significant losses on the extinguishment of debt unless we enter into another
refinancing transaction that extinguishes all then-current debt.
Gains on disposition of assets relate primarily to the refranchising and sale of related restaurant assets of Applebee’s company-
operated restaurants. Since we have achieved our goal of becoming 99% franchised, we do not anticipate significant gains or
losses on the disposition of assets in the future.