IHOP 2013 Annual Report Download - page 113

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
13. Stock-Based Incentive Plans (Continued)
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based compensation expense related to the LTIP awards. At December 31, 2013 and 2012, liabilities of $2.8 million and $4.5
million, respectively, were included as accrued employee compensation and benefits in the consolidated balance sheet.
14. Employee Benefit Plans
401(k) Savings and Investment Plan
Effective January 1, 2013, the Company amended the DineEquity, Inc. 401(k) Plan to (i) modify the Company matching
formula and (ii) eliminate the one year completed service requirement that previously had to be met to become eligible for
Company matching contributions. As amended, the Company matches 100% of the first four 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 matching contribution expense was $2.3 million, $2.2 million and $2.8 million
for the years ended December 31, 2013, 2012 and 2011, respectively.
15. Income Taxes
The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 was as follows:
Year Ended December 31,
2013 2012 2011
(In millions)
Provision (benefit) for income taxes:
Current........................................................................................................
Federal ................................................................................................... $ 48.5 $ 77.4 $ 13.2
State ....................................................................................................... 2.1 1.9 1.0
Foreign................................................................................................... 2.4 1.8 1.8
53.0 81.1 16.0
Deferred
Federal ................................................................................................... (13.5) (12.2) 11.4
State ....................................................................................................... (0.9) (1.7) 2.4
(14.4) (13.9) 13.8
Provision for income taxes......................................................................... $ 38.6 $ 67.2 $ 29.8
The provision for income taxes differs from the expected federal income tax rates as follows:
Year Ended December 31,
2013 2012 2011
Statutory federal income tax rate ................................................................ 35.0% 35.0% 35.0%
State and other taxes, net of federal tax benefit .......................................... 2.9 2.8 3.7
Change in unrecognized tax benefits .......................................................... 1.4 (0.2) (4.0)
Change in valuation allowance ................................................................... (2.7) 0.7 1.7
State adjustments including audits and settlements .................................... (1.1) 0.2 0.2
Compensation related tax credits, net of deduction offsets......................... (0.6) (0.9) (4.9)
Changes in tax rates and state tax laws ....................................................... — (3.2) (3.9)
Kansas High Performance Incentive Program credits ................................ — — 0.5
Other............................................................................................................ — 0.1 0.1
Effective tax rate ......................................................................................... 34.9% 34.5% 28.4%