IHOP 2014 Annual Report Download - page 102

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
8. Financing Obligations (Continued)
83
As of December 31, 2014, the Company's continuing involvement with 152 of the 181 Properties ended by assignment of
the lease obligation to a qualified franchisee or a release from the lessor. In accordance with the accounting described above,
the transactions related to these properties have been recorded as a sale with property and equipment and financing obligations
each cumulatively reduced by approximately $270.6 million.
As of December 31, 2014, future minimum lease payments under financing obligations during the initial terms of the leases
related to the sale-leaseback transactions are as follows:
Fiscal Years (In millions)
2015 (1).............................................................................................................................................................. $ 5.4
2016.................................................................................................................................................................. 5.0
2017 (1).............................................................................................................................................................. 4.6
2018.................................................................................................................................................................. 5.2
2019.................................................................................................................................................................. 5.5
Thereafter......................................................................................................................................................... 75.8
Total minimum lease payments ....................................................................................................................... 101.5
Less: interest .................................................................................................................................................... (58.8)
Total financing obligations .............................................................................................................................. 42.7
Less: current portion(2) ..................................................................................................................................... (0.1)
Long-term financing obligations...................................................................................................................... $ 42.6
____________________________________________________________________________________
(1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2015 and 11 monthly payments in fiscal 2017.
(2) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet.
9. Leases
The Company is the lessor or sub-lessor of approximately half of all IHOP franchise restaurants. The restaurants are
subleased to IHOP franchisees or in a few instances operated by the Company. These noncancelable leases and subleases
consist primarily of land, buildings and improvements.
The following is the Company's net investment in direct financing lease receivables:
December 31,
2014 2013
(In millions)
Total minimum rents receivable ................................................................................................. $ 126.7 $ 144.8
Less: unearned income ............................................................................................................... (45.1)(56.2)
Net investment in direct financing lease receivables.................................................................. 81.6 88.6
Less: current portion ................................................................................................................... (8.0)(7.0)
Long-term direct financing lease receivables ............................................................................. $ 73.6 $ 81.6
Contingent rental income, which is the amount above and beyond base rent, for the years ended December 31, 2014, 2013
and 2012 was $14.1 million, $12.7 million and $12.5 million, respectively.
The following is the Company's net investment in equipment leases receivable:
December 31,
2014 2013
(In millions)
Total minimum leases receivable................................................................................................ $ 165.4 $ 184.2
Less: unearned income ............................................................................................................... (58.1) (69.1)
Net investment in equipment leases receivables ........................................................................ 107.3 115.1
Less: current portion ................................................................................................................... (7.4) (7.1)
Long-term equipment leases receivable ..................................................................................... $ 99.9 $ 108.0
The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2014: