IHOP 2012 Annual Report Download - page 75

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On February 26, 2013, our Board of Directors approved a stock repurchase authorization of up to $100 million of our common
stock, replacing the previously announced $45 million stock repurchase authorization. We may now repurchase up to an additional
$78.8 million of our common stock under the revised authorization.
We do, from time to time, repurchase shares owned and tendered by employees to satisfy tax withholding obligations on the
vesting of restricted stock awards. Such shares are purchased at the closing price of our common stock on the vesting date.
Off-Balance Sheet Arrangements
As of December 31, 2012, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4) of SEC
Regulation S-K.
Contractual Obligations and Commitments
The following are our significant contractual obligations and commitments as of December 31, 2012:
Payments Due By Period
Contractual Obligations 1 Year 2 - 3 Years 4 - 5 Years More than
5 Years Total
(In millions)
Debt(1).......................................................................... $ 100.9 $ 201.9 $ 632.3 $ 821.0 $ 1,756.1
Operating leases.......................................................... 74.8 148.1 144.0 473.1 840.0
Capital leases(1)............................................................ 24.8 49.7 46.5 96.6 217.6
Financing obligations(1)............................................... 5.5 12.7 11.7 104.2 134.1
Purchase commitments ............................................... 111.9 25.6 — — 137.5
Unrecognized income tax benefits(2)........................... 3.3 — — 3.4 6.7
Total minimum payments............................................ 321.2 438.0 834.5 1,498.3 3,092.0
Less interest................................................................. (112.7)(222.9)(211.4)(140.8)(687.8)
Total............................................................................. $ 208.5 $ 215.1 $ 623.1 $ 1,357.5 $ 2,404.2
Expiration By Period
Commitments 1 Year 2 - 3 Years 4 - 5 Years More than
5 Years Total
(In millions)
Lease guarantees(3) ...................................................... $ 19.8 $ 41.0 $ 38.9 $ 348.8 $ 448.5
Letters of credit(4) ........................................................ 12.1 — — — 12.1
Food purchases(5)......................................................... 9.6 — — — 9.6
Total............................................................................. 41.5 41.0 38.9 348.8 470.2
(1) Includes interest calculated on balances as of December 31, 2012 using interest rates in effect as of December 31, 2012.
(2) While up to $3.3 million is expected to be paid within one year, there is no contractual obligation to do so. For the remaining liability, due to the uncertainties
related to these tax matters, we are unable to make a reasonably reliable estimate when a cash settlement with a taxing authority will occur.
(3) This amount represents the maximum potential liability for future payment guarantees under leases that have been assigned to third-party buyers of Applebee's
company-operated restaurants and expire at the end of the respective lease terms, which range from 2013 through 2048. See Note 13 of Notes to Consolidated
Financial Statements.
(4) Primarily to satisfy insurance-related collateral requirements. These letters of credit expire annually, but are typically renewed in the same amount each year
unless collateral requirements change.
(5) In some instances, IHOP and Applebee's may be required to guarantee their purchase of any remaining inventory of certain food and other items purchased
on their behalf for the purpose of supplying limited time promotions.