IHOP 2013 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2013 IHOP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
88
12. Closure and Impairment Charges
Closure and impairment charges for the years ended December 31, 2013, 2012 and 2011 were as follows:
Year Ended December 31,
2013 2012 2011
(In millions)
Closure charges $ 1.0 $ 2.3 $ 2.0
Long-lived tangible asset impairment 0.8 1.9 4.9
Lenexa lease termination — — 23.0
Total closure and impairment charges $ 1.8 $ 4.2 $ 29.9
Closure Charges
Closure charges for the year ended December 31, 2013 primarily related to adjustments to the estimated reserve for closed
surplus IHOP and Applebee's restaurants. Closure charges for the year ended December 31, 2012 primarily related to the
closure of one IHOP restaurant that was taken back from the franchisee operator and to adjustments to the estimated reserve for
previously closed surplus IHOP properties. Closure charges for the year ended December 31, 2011 primarily related to
adjustments to the estimated reserve for previously closed surplus IHOP properties.
Long-lived Tangible Asset Impairment
Long-lived tangible asset impairment charges for the year ended December 31, 2013 related to three Applebee's company-
operated restaurants in the Kansas City, Missouri area. The Company evaluated the causal factors of all impairments of long-
lived assets as they were recorded during 2013 and concluded they were based on factors specific to each asset and not
potential indicators of an impairment of other long-lived assets.
Long-lived tangible asset impairment charges for the year ended December 31, 2012 related to equipment at five IHOP
restaurants that were taken back from the franchisee operator and subsequently refranchised and to a parcel of land previously
intended for future restaurant development. The Company evaluated the causal factors of all impairments of long-lived assets
as they were recorded during 2012 and concluded they were based on factors specific to each asset and not potential indicators
of an impairment of other long-lived assets.
Long-lived tangible asset impairment charges for the year ended December 31, 2011 were primarily related to termination
of the Company's sublease of the commercial space occupied by the Applebee’s Restaurant Support Center. The Company
recognized a $4.5 million impairment charge related to the furniture, fixtures and leasehold improvements at that facility.
Lenexa Lease Termination
In April 2011, the Company entered into a sublease termination agreement related to the Company’s sublease of the
commercial space occupied by the Applebee’s Restaurant Support Center in Lenexa, Kansas. The Company recognized a
charge of $23.0 million for the termination fee and other closing costs.
13. Stock-Based Incentive Plans
General Description
From time to time, the Company has granted nonqualified stock options, restricted stock awards, cash-settled and stock-
settled restricted stock units and performance units to officers, other employees and non-employee directors of the Company.
Currently, the Company is authorized to grant stock options, stock appreciation rights, restricted stock awards, cash-settled and
stock-settled restricted stock units and performance units to officers, other employees and non-employee directors under the
DineEquity, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan was approved by stockholders on May 17, 2011
and permits the issuance of up to 1,500,000 shares of the Company’s common stock for incentive stock awards. The 2011 Plan
will expire in May 2021.