Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2018, 2017 and 2016 was as follows:

	Year Ended December 31,
	2018			2017			2016
Provision (benefit) for income taxes:	(In millions)
Current
Federal	$	33.6		$	42.6		$	60.8
State	6.4			5.1			6.4
Foreign	2.1			2.9			2.3
	42.1			50.6			69.5
Deferred
Federal	(7.8		)	(131.0		)	(9.5		)
State	(4.0		)	(5.1		)	(3.2		)
	(11.8		)	(136.1		)	(12.7		)
Provision (benefit) for income taxes	$	30.3		$	(85.6	)	$	56.8

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income taxes differs from the expected federal income tax rates as follows:

	Year Ended December 31,
	2018		2017		2016
Statutory federal income tax rate	21.0	%	35.0	%	35.0	%
Non-deductibility of goodwill impairment	—		(29.3	)	—
Change in federal tax rate	—		15.5		—
State and other taxes, net of federal tax benefit	3.6		0.4		2.7
Change in unrecognized tax benefits	3.3		(0.7	)	0.4
Change in valuation allowance	0.4		0.3		—
Domestic production activity deduction	—		0.3		(0.6	)
Changes in tax rates and state tax laws	(1.6	)	(0.3	)	(1.7	)
Change in accounting for excess tax deficiencies/benefits	0.1		(0.5	)	—
Other	0.6		(0.7	)	0.2
Effective tax rate	27.4	%	20.0	%	36.0	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets (liabilities) consisted of the following components:

	2018			2017
	(In millions)
Differences in capitalization and depreciation and amortization of reacquired franchises and equipment	$	—		$	—
Differences in acquisition financing costs	—			0.1
Employee compensation	9.0			7.6
Deferred gain on sale of assets	—			0.7
Book/tax difference in revenue recognition	34.3			14.2
Other	16.8			42.2
Deferred tax assets	60.1			64.8
Valuation allowance	(0.4		)	—
Total deferred tax assets after valuation allowance	59.7			64.8
Differences between financial and tax accounting in the recognition of franchise and equipment sales	(16.8		)	(20.7		)
Differences in capitalization and depreciation (1)	(139.2		)	(147.5		)
Differences in acquisition financing costs	(0.6		)	—
Book/tax difference in revenue recognition	—			(2.4		)
Differences between book and tax basis of property and equipment	(8.1		)	(8.5		)
Other	(0.8		)	(3.5		)
Deferred tax liabilities	(165.5		)	(182.6		)
Net deferred tax liabilities	$	(105.8	)	$	(117.8	)

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⁽¹⁾  Primarily related to the 2007 Applebee's acquisition.

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2018			2017			2016
Unrecognized tax benefit as of January 1	$	5.9		$	3.9		$	3.9
Changes for tax positions of prior years	3.8			2.8			0.6
Increases for tax positions related to the current year	0.4			0.6			0.1
Decreases relating to settlements and lapsing of statutes of limitations	(4.9		)	(1.4		)	(0.7		)
Unrecognized tax benefit as of December 31	$	5.2		$	5.9		$	3.9