IHOP 2015 Annual Report Download - page 92

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
72
9. Leases
The Company is the lessor or sub-lessor of approximately half of all domestic IHOP franchise restaurants. The restaurants
are subleased to IHOP franchisees or in a few instances operated by the Company or an Applebee's franchisee. 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,
2015 2014
(In millions)
Total minimum rents receivable................................................................................................. $ 108.9 $ 126.7
Less: unearned income ............................................................................................................... (35.2)(45.1)
Net investment in direct financing leases receivable.................................................................. 73.7 81.6
Less: current portion................................................................................................................... (8.7)(8.0)
Long-term direct financing leases receivable............................................................................. $ 65.0 $ 73.6
Contingent rental income, which is the amount above and beyond base rent, for the years ended December 31, 2015, 2014
and 2013 was $16.7 million, $14.1 million and $12.7 million, respectively.
The following is the Company's net investment in equipment leases receivable:
December 31,
2015 2014
(In millions)
Total minimum leases receivable................................................................................................ $ 140.5 $ 165.4
Less: unearned income ............................................................................................................... (45.0) (58.1)
Net investment in equipment leases receivable.......................................................................... 95.5 107.3
Less: current portion................................................................................................................... (7.5) (7.4)
Long-term equipment leases receivable ..................................................................................... $ 88.0 $ 99.9
The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2015:
Capital
Leases Operating
Leases
(In millions)
2016 ............................................................................................................................................ $ 24.0 $ 76.5
2017 (1) ........................................................................................................................................ 21.3 69.2
2018 ............................................................................................................................................ 20.6 73.7
2019 ............................................................................................................................................ 17.3 69.5
2020 ............................................................................................................................................ 15.2 67.5
Thereafter.................................................................................................................................... 45.2 255.9
Total minimum lease payments.................................................................................................. 143.6 $ 612.3
Less: interest............................................................................................................................... (44.6)
Capital lease obligations............................................................................................................. 99.0
Less: current portion(2)............................................................................................................................................. (14.2)
Long-term capital lease obligations............................................................................................ $ 84.8
______________________________________________________
(1) Due to the varying closing date of the Company's fiscal year, 11 monthly payments will be made in fiscal 2017.
(2) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet.
The asset cost and carrying amount on company-owned property leased at December 31, 2015 was $89.0 million and
$62.7 million, respectively. The asset cost and carrying amount on company-owned property leased at December 31, 2014, was
$90.1 million and $64.5 million, respectively. The asset cost and carrying amounts represent the land and building asset values
and net book values on sites leased to franchisees.
The minimum future lease payments shown above have not been reduced by the following future minimum rents to be
received on noncancelable subleases and leases of owned property at December 31, 2015: