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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
67
4. Property and Equipment
Property and equipment by category is as follows:
2015 2014
(In millions)
Leaseholds and improvements.................................................................................................... $ 256.4 $ 258.3
Equipment and fixtures............................................................................................................... 82.2 78.4
Properties under capital lease ..................................................................................................... 58.8 59.2
Buildings and improvements...................................................................................................... 57.9 58.7
Land............................................................................................................................................ 57.8 59.2
Construction in progress............................................................................................................. 0.8 5.1
Property and equipment, gross ................................................................................................... 513.9 518.9
Less: accumulated depreciation and amortization...................................................................... (294.3) (277.7)
Property and equipment, net....................................................................................................... $ 219.6 $ 241.2
The Company recorded depreciation expense on property and equipment of $22.8 million, $22.7 million and $23.1 million
for the years ended December 31, 2015, 2014 and 2013, respectively.
Accumulated depreciation and amortization includes accumulated amortization for properties under capital lease in the
amount of $38.8 million and $36.8 million at December 31, 2015 and 2014, respectively.
5. Goodwill
The significant majority of the Company's goodwill arose from the November 29, 2007 acquisition of Applebee's. As of
December 31, 2015 and 2014, the balance of goodwill was $697.5 million, of which $686.7 million has been allocated to the
Applebee's franchise reporting unit and $10.8 million to the IHOP franchise reporting unit.
The Company assessed goodwill for impairment in accordance with its policy described in Note 2. In the fourth quarter of
fiscal 2015, the Company performed a qualitative assessment of the goodwill of the Applebee's franchise unit and the IHOP
franchise unit and concluded it was more-likely-than-not that the fair values exceeded the respective carrying amounts and
therefore bypassed any quantitative testing of goodwill. In the fourth quarter of fiscal 2014, the Company performed a
quantitative test of the goodwill of the Applebee's franchise reporting unit and a qualitative test of the goodwill of the IHOP
franchise unit. In the fourth quarter of fiscal 2013, the Company performed a quantitative test of the goodwill of the Applebee's
franchise unit and the IHOP franchise unit.
There were no impairments of goodwill recorded resulting from these assessments in 2015, 2014 or 2013.
6. Other Intangible Assets
The significant majority of the Company's other intangible assets arose from the November 29, 2007 acquisition of
Applebee's. As of December 31, 2015 and 2014, intangible assets were as follows:
Not Subject to Amortization Subject to Amortization
Tradename Other Franchising
Rights Recipes and
Menus Total
(In millions)
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
Amortization expense.................................................... — — (10.0) — (10.0)
Other.............................................................................. — 0.6 — — 0.6
Balance at December 31, 2015...................................... $ 652.4 $ 1.5 $ 119.0 $ — $ 772.9