Consolidating Financial Information

Certain of the Company's subsidiaries have guaranteed the Company's obligations under the Senior Secured Credit Facility. The following presents the condensed consolidating financial information separately for: (i) the parent Company, the issuer of the guaranteed obligations; (ii) the guarantor subsidiaries, on a combined basis, as specified in the Credit Agreement; (iii) the non-guarantor subsidiaries, on a combined basis; (iv) consolidating eliminations and reclassifications; and (v) DineEquity, Inc. and Subsidiaries, on a consolidated basis.

Each guarantor subsidiary is 100% owned by the Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.

Supplemental Condensed Consolidating Balance Sheet

June 30, 2012

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries		Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Assets
Current Assets
Cash and cash equivalents	$	—		$	31.9	$	0.5		$	—		$	32.4
Receivables, net	0.9			84.9		0.1			(8.0		)	77.9
Inventories	—			12.1		—			—			12.1
Prepaid expenses and other current assets	118.5			48.8		—			(111.1		)	56.2
Deferred income taxes	2.3			22.4		0.3			—			25.0
Assets held for sale	—			25.8		1.8			—			27.6
Intercompany	(283.6		)	278.0		5.6			—			—
Total current assets	(161.9		)	503.9		8.3			(119.1		)	231.2
Long-term receivables	—			219.4		—			—			219.4
Property and equipment, net	24.3			411.3		—			—			435.6
Goodwill	—			697.5		—			—			697.5
Other intangible assets, net	—			815.6		—			—			815.6
Other assets, net	20.9			93.7		—			—			114.6
Investment in subsidiaries	1,697.6			—		—			(1,697.6		)	—
Total assets	$	1,580.9		$	2,741.4	$	8.3		$	(1,816.7	)	$	2,513.9
Liabilities and Stockholders’ Equity
Current Liabilities
Current maturities of long-term debt	$	15.4		$	—	$	—		$	(8.0	)	$	7.4
Accounts payable	2.2			26.3		—			—			28.5
Accrued employee compensation and benefits	4.6			14.5		—						19.1
Gift card liability	—			91.3		—						91.3
Income taxes payable	(23.9		)	135.0		—			(111.1		)	—
Other accrued expenses	15.0			34.7		0.3						50.0
Total current liabilities	13.3			301.8		0.3			(119.1		)	196.3
Long-term debt	1,338.8			—		—						1,338.8
Financing obligations	—			151.6		—						151.6
Capital lease obligations	—			129.1		—						129.1
Deferred income taxes	6.5			366.0		(0.3		)	—			372.2
Other liabilities	5.5			102.9		0.9						109.3
Total liabilities	1,364.1			1,051.4		0.9			(119.1		)	2,297.3
Total stockholders’ equity	216.8			1,690.0		7.4			(1,697.6		)	216.6
Total liabilities and stockholders’ equity	$	1,580.9		$	2,741.4	$	8.3		$	(1,816.7	)	$	2,513.9

⁽¹⁾ Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.

Supplemental Condensed Consolidating Balance Sheet

December 31, 2011

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries		Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Assets
Current Assets
Cash and cash equivalents	$	9.9		$	50.4	$	0.4		$	—		$	60.7
Receivables, net	0.6			121.0		0.1			(6.0		)	115.7
Inventories	—			12.0		—			—			12.0
Prepaid expenses and other current assets	85.3			44.6		—			(71.3		)	58.6
Deferred income taxes	1.5			19.0		0.1			—			20.6
Assets held for sale	—			7.3		2.1			—			9.4
Intercompany	(300.2		)	294.5		5.7			—			—
Total current assets	(202.9		)	548.7		8.4			(77.3		)	276.9
Long-term receivables	—			226.5		—			—			226.5
Property and equipment, net	24.6			449.6		—			—			474.2
Goodwill	—			697.5		—			—			697.5
Other intangible assets, net	—			822.4		—			—			822.4
Other assets, net	23.2			93.5		0.1			—			116.8
Investment in subsidiaries	1,697.6			—		—			(1,697.6		)	—
Total assets	$	1,542.5		$	2,838.2	$	8.5		$	(1,774.9	)	$	2,614.3
Liabilities and Stockholders’ Equity
Current Liabilities
Current maturities of long-term debt	$	13.4		$	—	$	—		$	(6.0	)	$	7.4
Accounts payable	2.8			26.2		—			—			29.0
Accrued employee compensation and benefits	6.7			19.5		—			—			26.2
Gift card liability	—			147.0		—			—			147.0
Other accrued expenses	(61.6		)	180.6		0.4			(71.3		)	48.1
Total current liabilities	(38.7		)	373.3		0.4			(77.3		)	257.6
Long-term debt	1,411.4			—		—			—			1,411.4
Financing obligations	—			162.7		—			—			162.7
Capital lease obligations	—			134.4		—			—			134.4
Deferred income taxes	8.9			375.3		(0.4		)	—			383.8
Other liabilities	5.4			102.6		1.1			—			109.1
Total liabilities	1,387.0			1,148.3		1.1			(77.3		)	2,459.1
Total stockholders’ equity	155.5			1,689.9		7.4			(1,697.6		)	155.2
Total liabilities and stockholders’ equity	$	1,542.5		$	2,838.2	$	8.5		$	(1,774.9	)	$	2,614.3

⁽¹⁾ Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.

Supplemental Condensed Consolidating Statement of Operations

For the Three Months Ended June 30, 2012

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Revenues
Franchise revenues	$	0.6		$	101.6		$	0.3		$	—		$	102.5
Restaurant sales	—			93.8			—			—			93.8
Rental revenues	—			29.2			—			—			29.1
Financing revenues	—			4.0			—			—			4.0
Total revenue	0.6			228.6			0.3			—			229.4
Franchise expenses	0.6			25.7			—			—			26.3
Restaurant expenses	—			79.6			—			—			79.6
Rental expenses	—			24.3			—			—			24.3
Financing expenses	—			0.9			—			—			0.9
General and administrative	6.1			30.6			0.5			—			37.2
Interest expense	27.0			2.7			—			—			29.7
Impairment and closure	—			0.1			—			—			0.1
Amortization of intangible assets	—			3.1			—			—			3.1
Loss (gain) on disposition of assets	—			1.2			(0.4		)	—			0.7
Loss on extinguishment of debt	—			—			—			—			—
Intercompany dividend	(37.0		)	—			—			37.0			—
Income (loss) before income taxes	3.9			60.4			0.2			(37.0		)	27.4
Benefit (provision) for income taxes	12.8			(23.3		)	—			—			(10.5		)
Net (loss) income	$	16.9		$	36.9		$	0.1		$	(37.0	)	$	16.9
Total comprehensive income	$	16.9		$	36.9		$	0.1		$	(37.0	)	$	16.9

Supplemental Condensed Consolidating Statement of Operations

For the Three Months Ended June 30, 2011

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Revenues
Franchise revenues	$	0.6		$	97.7		$	0.2		$	—		$	98.6
Restaurant sales	—			134.3			0.4			—			134.6
Rental revenues	—			31.6			—			—			31.6
Financing revenues	—			3.5			—			—			3.5
Total revenue	0.6			267.1			0.6			—			268.3
Franchise expenses	0.5			25.7			—			—			26.2
Restaurant expenses	—			117.1			0.2			—			117.3
Rental expenses	—			24.6			—			—			24.6
Financing expenses	—			—			—			—			—
General and administrative	6.1			31.7			0.6			—			38.4
Interest expense	28.7			4.2			—			—			32.9
Impairment and closure	—			21.8			—			—			21.8
Amortization of intangible assets	—			3.1			—			—			3.1
Loss on disposition of assets	—			1.2			0.1			—			1.3
Loss on extinguishment of debt	0.9			—			—			—			0.9
Debt modification costs	—			—			—			—			—
Other (income) expense	30.4			43.8			(0.5		)	(73.7		)	—
Income (loss) before income taxes	(66.0		)	(6.1		)	0.2			73.7			1.8
Benefit (provision) for income taxes	13.8			(15.1		)	(0.1		)	—			(1.5		)
Net (loss) income	$	(52.2	)	$	(21.2	)	$	0.2		$	73.7		$	0.3
Total comprehensive income	$	(52.2	)	$	(21.2	)	$	0.2		$	73.7		$	0.3

⁽¹⁾ Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.

Supplemental Condensed Consolidating Statement of Operations

For the Six Months Ended June 30, 2012

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Revenues
Franchise revenues	$	1.3		$	209.1		$	0.5		$	—		$	210.9
Restaurant sales	—			194.7			—			—			194.7
Rental revenues	—			61.2			—			—			61.2
Financing revenues	—			8.2			—			—			8.3
Total revenue	1.3			473.2			0.5			—			475.0
Franchise expenses	1.2			52.8			—			—			54.0
Restaurant expenses	—			163.8			—			—			163.8
Rental expenses	—			48.8			—			—			48.9
Financing expenses	—			1.6			—			—			1.6
General and administrative	13.1			62.7			1.0			—			76.9
Interest expense	54.4			5.5			—			—			59.9
Impairment and closure	—			0.4			0.4			—			0.8
Amortization of intangible assets	—			6.2			—			—			6.2
Gain on disposition of assets	—			(15.2		)	(0.8		)	—			(16.0		)
Loss on extinguishment of debt	2.6			—			—			—			2.6
Intercompany dividend	(91.1		)	—			—			91.1			—
Income (loss) before income taxes	21.1			146.6			(0.1		)	(91.1		)	76.5
Benefit (provision) for income taxes	27.2			(55.3		)	—			—			(28.2		)
Net (loss) income	$	48.3		$	91.3		$	(0.1	)	$	(91.1	)	$	48.3
Total comprehensive income	$	48.2		$	91.4		$	(0.1	)	$	(91.1	)	$	48.4

Supplemental Condensed Consolidating Statement of Operations

For the Six Months Ended June 30, 2011

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification			Consolidated
Revenues
Franchise revenues	$	1.3		$	201.3		$	0.5		$	—		$	203.1
Restaurant sales	—			288.5			0.8			—			289.3
Rental revenues	—			63.8			—			—			63.8
Financing revenues	—			12.3			—			—			12.3
Total revenue	1.3			565.9			1.3			—			568.5
Franchise expenses	1.0			52.7			—			—			53.7
Restaurant expenses	—			248.6			0.4			—			249.0
Rental expenses	—			49.2			—			—			49.2
Financing expenses	—			5.6			—			—			5.6
General and administrative	13.6			61.6			1.2			—			76.4
Interest expense	61.0			8.1			—			—			69.2
Impairment and closure	—			26.7			0.1			—			26.8
Amortization of intangible assets	—			6.2						—			6.2
Gain on disposition of assets	—			(22.5		)	—			—			(22.5		)
Loss on extinguishment of debt	7.9			—						—			7.9
Debt modification costs	4.1			—			—			—			4.1
Other (income) expense	14.3			20.5			(0.9		)	(33.9		)	—
Income (loss) before income taxes	(100.6		)	109.2			0.5			33.9			43.0
Benefit (provision) for income taxes	33.4			(46.2		)	(0.2		)	—			(13.0		)
Net (loss) income	$	(67.2	)	$	63.0		$	0.3		$	33.9		$	30.0
Total comprehensive income	$	(67.2	)	$	63.1		$	0.3		$	33.9		$	30.0

⁽¹⁾ Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.

Supplemental Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2012

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification	Consolidated
Cash flows provided by (used in) operating activities	$	(64.9	)	$	101.1		$	0.2		—	$	36.4
Investing cash flows
Additions to property and equipment	(3.0		)	(7.7		)	—				(10.7		)
Principal receipts from long-term receivables	—			6.6			—			—	6.6
Proceeds from sale of assets	—			21.5			—			—	21.5
Other	—			(0.8		)	—			—	(0.8		)
Cash flows provided by (used in) investing activities	(3.0		)	19.6			—			—	16.6
Financing cash flows
Revolving credit borrowings	35.0			—			—			—	35.0
Revolving credit repayments	(35.0		)	—			—			—	(35.0		)
Payment of debt	(76.0		)	(6.1		)	—			—	(82.2		)
Payment of debt issuance costs	—			—			—			—	—
Purchase of common stock	—			—			—			—	—
Restricted cash	—			(3.8		)	—			—	(3.8		)
Other	3.9			0.7			—			—	4.6
Intercompany transfers	130.1			(130.0		)	(0.1		)	—	—
Cash flows provided by (used in) financing activities	58.0			(139.2		)	(0.1		)	—	(81.3		)
Net change	(9.9		)	(18.5		)	0.1			—	(28.3		)
Beginning cash and equivalents	9.9			50.4			0.4			—	60.7
Ending cash and equivalents	$	—		$	31.9		$	0.5		—	$	32.4

Supplemental Condensed Consolidating Statement of Cash Flows

For the Six Months Ended June 30, 2011

(In millions⁽¹⁾)



	Parent			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Eliminations and Reclassification	Consolidated
Cash flows provided by (used in) operating activities	$	(79.7	)	$	127.4		$	0.5		—	$	48.2
Investing cash flows
Additions to property and equipment	(4.0		)	(9.5		)	—			—	(13.5		)
Principal receipts from long-term receivables	—			7.1			—			—	7.1
Proceeds from sale of assets	—			55.5			—			—	55.5
Other	—			(0.6		)	—			—	(0.6		)
Cash flows provided by (used in) investing activities	(4.0		)	52.5			—			—	48.5
Financing cash flows
Revolving credit borrowings	25.0			—			—			—	25.0
Revolving credit repayments	(25.0		)								(25.0		)
Payment of debt	(153.4		)	(6.8		)	—			—	(160.2		)
Payment of debt issuance costs	(12.3		)	—			—			—	(12.3		)
Restricted cash	—			1.5			—			—	1.5
Other	6.2			0.3			—			—	6.5
Intercompany transfers	226.6			(225.0		)	(1.6		)	—	—
Cash flows provided by (used in) financing activities	67.1			(230.0		)	(1.6		)	—	(164.5		)
Net change	(16.6		)	(50.1		)	(1.1		)	—	(67.8		)
Beginning cash and equivalents	23.4			77.3			1.6			—	102.3
Ending cash and equivalents	$	6.8		$	27.2		$	0.5		—	$	34.5

⁽¹⁾ Supplemental statements presented in millions may not add due to rounding from Consolidated Statements presented in thousands.