XML 29 R12.htm IDEA: XBRL DOCUMENT
v3.21.1

Lease Disclosures | 3 Months Ended
--- | ---
Mar. 31, 2021
Leases [Abstract] |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 550 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 55 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and restaurant support centers in Kansas City, Missouri and Raleigh, North Carolina. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 240 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2021. Approximately 30 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2021. The Company's lease cost for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | $ | 1.2 |  |  | $ | 1.3 |
Interest on lease liabilities |  |  |  |  | 1.4 |  |  | 1.7 |
Operating lease cost |  |  |  |  | 25.1 |  |  | 26.5 |
Variable lease cost |  |  |  |  | 0.3 |  |  | 0.4 |
Short-term lease cost |  |  |  |  | 0.0 |  |  | 0.0 |
Sublease income |  |  |  |  | (24.2) |  |  | (26.6) |
Lease cost |  |  |  |  | $ | 3.8 |  |  | $ | 3.3 |
Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows:
| Finance Leases |  | Operating Leases
| (In millions)
2021 (remaining nine months) | $ | 11.7 |  |  | $ | 69.0 |
2022 | 14.4 |  |  | 86.2 |
2023 | 11.6 |  |  | 71.0 |
2024 | 9.7 |  |  | 65.8 |
2025 | 8.5 |  |  | 57.0 |
Thereafter | 50.8 |  |  | 146.6 |
Total minimum lease payments | 106.7 |  |  | 495.6 |
Less: interest/imputed interest | (30.2) |  |  | (90.9) |
Total obligations | 76.5 |  |  | 404.7 |
Less: current portion | (10.3) |  |  | (70.3) |
Long-term lease obligations | $ | 66.2 |  |  | $ | 334.4 |
The weighted average remaining lease term as of March 31, 2021 was 7.2 years for finance leases and 9.2 years for operating leases. The weighted average discount rate as of March 31, 2021 was 10.2% for finance leases and 5.6% for operating leases. During the three months ended March 31, 2021 and 2020, the Company made the following cash payments for leases:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Principal payments on finance lease obligations |  |  |  |  | $ | 2.6 |  |  | $ | 3.0 |
Interest payments on finance lease obligations |  |  |  |  | $ | 1.5 |  |  | $ | 1.7 |
Payments on operating leases |  |  |  |  | $ | 23.0 |  |  | $ | 23.4 |
Variable lease payments |  |  |  |  | $ | 0.3 |  |  | $ | 0.1 |
The Company's income from operating leases for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Minimum lease payments |  |  |  |  | $ | 23.8 |  |  | $ | 25.4 |
Variable lease income |  |  |  |  | 1.6 |  |  | 2.4 |
Total operating lease income |  |  |  |  | $ | 25.4 |  |  | $ | 27.8 |
Minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2021 were as follows:
| (In millions)
2021 (remaining nine months) | $ | 75.6 |
2022 | 98.8 |
2023 | 95.0 |
2024 | 86.9 |
2025 | 75.0 |
Thereafter | 164.3 |
Total minimum rents receivable | $ | 595.6 |
The Company's income from direct financing leases for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Interest income |  |  |  |  | $ | 0.6 |  |  | $ | 1.0 |
Variable lease income |  |  |  |  | 0.1 |  |  | 0.2 |
Total operating lease income |  |  |  |  | $ | 0.7 |  |  | $ | 1.2 |
Minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2021 were as follows:
| (In millions)
2021 (remaining nine months) | $ | 7.5 |
2022 | 7.5 |
2023 | 3.6 |
2024 | 1.5 |
2025 | 0.7 |
Thereafter | 3.1 |
Total minimum rents receivable | 23.9 |
Less: unearned income | (3.8) |
Total net investment in direct financing leases | 20.1 |
Less: current portion | (7.9) |
Long-term investment in direct financing leases | $ | 12.2 |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The Company currently leases from third parties the real property on which approximately 550 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 55 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and restaurant support centers in Kansas City, Missouri and Raleigh, North Carolina. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 240 of the Company's leases met the sales levels that required variable rent payments to the Company (as lessor), based on a percentage of restaurant sales during the three months ended March 31, 2021. Approximately 30 of the leases met the sales levels that required variable rent payments by the Company (as lessee), based on a percentage of restaurant sales during the three months ended March 31, 2021. The Company's lease cost for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | $ | 1.2 |  |  | $ | 1.3 |
Interest on lease liabilities |  |  |  |  | 1.4 |  |  | 1.7 |
Operating lease cost |  |  |  |  | 25.1 |  |  | 26.5 |
Variable lease cost |  |  |  |  | 0.3 |  |  | 0.4 |
Short-term lease cost |  |  |  |  | 0.0 |  |  | 0.0 |
Sublease income |  |  |  |  | (24.2) |  |  | (26.6) |
Lease cost |  |  |  |  | $ | 3.8 |  |  | $ | 3.3 |
Future minimum lease payments under noncancelable leases as lessee as of March 31, 2021 were as follows:
| Finance Leases |  | Operating Leases
| (In millions)
2021 (remaining nine months) | $ | 11.7 |  |  | $ | 69.0 |
2022 | 14.4 |  |  | 86.2 |
2023 | 11.6 |  |  | 71.0 |
2024 | 9.7 |  |  | 65.8 |
2025 | 8.5 |  |  | 57.0 |
Thereafter | 50.8 |  |  | 146.6 |
Total minimum lease payments | 106.7 |  |  | 495.6 |
Less: interest/imputed interest | (30.2) |  |  | (90.9) |
Total obligations | 76.5 |  |  | 404.7 |
Less: current portion | (10.3) |  |  | (70.3) |
Long-term lease obligations | $ | 66.2 |  |  | $ | 334.4 |
The weighted average remaining lease term as of March 31, 2021 was 7.2 years for finance leases and 9.2 years for operating leases. The weighted average discount rate as of March 31, 2021 was 10.2% for finance leases and 5.6% for operating leases. During the three months ended March 31, 2021 and 2020, the Company made the following cash payments for leases:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Principal payments on finance lease obligations |  |  |  |  | $ | 2.6 |  |  | $ | 3.0 |
Interest payments on finance lease obligations |  |  |  |  | $ | 1.5 |  |  | $ | 1.7 |
Payments on operating leases |  |  |  |  | $ | 23.0 |  |  | $ | 23.4 |
Variable lease payments |  |  |  |  | $ | 0.3 |  |  | $ | 0.1 |
The Company's income from operating leases for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Minimum lease payments |  |  |  |  | $ | 23.8 |  |  | $ | 25.4 |
Variable lease income |  |  |  |  | 1.6 |  |  | 2.4 |
Total operating lease income |  |  |  |  | $ | 25.4 |  |  | $ | 27.8 |
Minimum payments to be received as lessor under noncancelable operating leases as of March 31, 2021 were as follows:
| (In millions)
2021 (remaining nine months) | $ | 75.6 |
2022 | 98.8 |
2023 | 95.0 |
2024 | 86.9 |
2025 | 75.0 |
Thereafter | 164.3 |
Total minimum rents receivable | $ | 595.6 |
The Company's income from direct financing leases for the three months ended March 31, 2021 and 2020 was as follows:
|  |  | Three months ended March 31,
|  |  |  |  | 2021 |  | 2020
|  |  |  | (In millions)
Interest income |  |  |  |  | $ | 0.6 |  |  | $ | 1.0 |
Variable lease income |  |  |  |  | 0.1 |  |  | 0.2 |
Total operating lease income |  |  |  |  | $ | 0.7 |  |  | $ | 1.2 |
Minimum payments to be received as lessor under noncancelable direct financing leases as of March 31, 2021 were as follows:
| (In millions)
2021 (remaining nine months) | $ | 7.5 |
2022 | 7.5 |
2023 | 3.6 |
2024 | 1.5 |
2025 | 0.7 |
Thereafter | 3.1 |
Total minimum rents receivable | 23.9 |
Less: unearned income | (3.8) |
Total net investment in direct financing leases | 20.1 |
Less: current portion | (7.9) |
Long-term investment in direct financing leases | $ | 12.2 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration