IHOP 2015 Annual Report Download - page 101

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
81
16. Net Income Per Share
The computation of the Company's basic and diluted net income per share is as follows:
Year Ended December 31,
2015 2014 2013
(In thousands, except per share data)
Numerator for basic and diluted income per common share:
Net income...................................................................................................... $ 104,923 $ 36,453 $ 72,037
Less: Net income allocated to unvested participating restricted stock....... (1,400)(521)(1,200)
Net income available to common stockholders - basic................................... 103,523 35,932 70,837
Effect of unvested participating restricted stock........................................ 4 — 4
Numerator - net income available to common shareholders - diluted ............ $ 103,527 $ 35,932 $ 70,841
Denominator:
Weighted average outstanding shares of common stock - basic..................... 18,637 18,753 18,871
Effect of dilutive securities:
Stock options........................................................................................... 131 203 270
Weighted average outstanding shares of common stock - diluted.................. 18,768 18,956 19,141
Net income per common share:
Basic........................................................................................................... $ 5.55 $ 1.92 $ 3.75
Diluted........................................................................................................ $ 5.52 $ 1.90 $ 3.70
17. Facility Consolidation Costs
In September 2015, the Company approved a plan to consolidate many core restaurant and franchisee support functions at
its headquarters in Glendale, California and communicated the plan to employees. In conjunction with this action, the Company
will exit a significant portion of the Applebee's restaurant support center in Kansas City, Missouri. The Company estimates it
will incur a total of approximately $8 million in costs related to the exit of the facility and $8 million in employee termination
benefits and other personnel-related costs associated with the consolidation. The majority of the facility exit costs will be
incurred as of the date the Company will stop using the significant portion of the facility it will be vacating, estimated to be in
the first half of fiscal 2016.
During the year ended December 31, 2015, the Company incurred $4.6 million of employee termination costs, primarily
severance and relocation costs associated with the consolidation. These charges were included in general and administrative
expenses in the Consolidated Statements of Comprehensive Income.
Employee
Termination Costs
(In millions )
Accrued termination costs at December 31, 2014...................................................................................... $ —
Charges....................................................................................................................................................... 4.6
Payments .................................................................................................................................................... (1.1)
Accrued termination costs at December 31, 2015...................................................................................... $ 3.5
Approximately $3.3 million and $0.2 million of accrued termination costs were included in accrued employee compensation
and benefits and other accrued expenses, respectively, in the Consolidated Balance Sheet at December 31, 2015.