IHOP 2014 Annual Report Download - page 95

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
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6. Other Intangible Assets
As of December 31, 2014 and 2013, intangible assets were as follows:
Not Subject to Amortization Subject to Amortization
Tradename
Liquor
Licenses Other
Franchising
Rights
Recipes and
Menus Leaseholds Total
(In millions)
Balance at December 31, 2011 ... $ 652.4 $ 1.5 $ 0.5 $ 159.3 $ 6.6 $ 2.1 $ 822.4
Amortization expense ................. — — — (10.0) (2.3) (0.2) (12.5)
Refranchising.............................. — (1.5) (0.1) (0.3) — (1.9) (3.8)
Other ........................................... — — — — — —
Balance at December 31, 2012 ... 652.4 — 0.4 149.0 4.3 — 806.1
Amortization expense ................. — — — (10.0) (2.3) — (12.3)
Other ........................................... — — 0.3 — — — 0.3
Balance at December 31, 2013 ... 652.4 — 0.7 139.0 2.0 — 794.1
Amortization expense ................. — — — (10.0) (2.0) — (12.0)
Other ........................................... — — 0.2 — — — 0.2
Balance at December 31, 2014 ... $ 652.4 $ — $ 0.9 $ 129.0 $ — $ — $ 782.3
Annual amortization expense for the next five fiscal years is estimated to be approximately $10.0 million per year. The
weighted average life of the intangible assets subject to amortization was 20 years at December 31, 2014 and 2013.
Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2014 and 2013 are as follows:
December 31, 2014 December 31, 2013
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
(In millions)
Franchising rights........................................ $ 200.0 $ (71.0) $ 129.0 $ 200.0 $ (61.0) $ 139.0
Recipes and menus...................................... 15.7 (15.7) — 15.7 (13.7) 2.0
Leaseholds/other ......................................... 0.3 (0.3) — 0.3 (0.3) —
Total.......................................................... $ 216.0 $ (87.0) $ 129.0 $ 216.0 $ (75.0) $ 141.0
7. Long-Term Debt
Long-term debt consists of the following components:
2014 2013
(In millions)
Series 2014-1 Class A-2 4.227% Fixed Rate Senior Secured Notes.......................................... $ 1,300.0 $ —
Senior Secured Credit Facility, due October 2017, at a variable interest rate of 3.75% and
4.25% as of December 31, 2013 and 2012, respectively............................................................ — 467.2
Senior Notes due October 2018, at a fixed rate of 9.5% ............................................................ — 760.8
Discount...................................................................................................................................... — (19.7)
Total debt .................................................................................................................................... 1,300.0 1,208.2
Less: current maturities............................................................................................................... — (4.7)
Long-term debt ........................................................................................................................... $ 1,300.0 $ 1,203.5
Long-Term Debt Outstanding at December 31, 2014
On September 30, 2014, Applebee’s Funding LLC and IHOP Funding LLC (each a “Co-Issuer”), each a special purpose,
wholly-owned indirect subsidiary of the Company issued $1.3 billion of Series 2014-1 4.277% Fixed Rate Senior Notes, Class
A-2 (the “Class A-2 Notes”) in an offering exempt from registration under the Securities Act of 1933, as amended. The Co-
Issuers also entered into a revolving financing facility of Series 2014-1 Variable Funding Senior Notes Class A-1 (the “Variable
Funding Notes”), which allows for drawings of up to $100 million of Variable Funding Notes and the issuance of letters of