Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 was as follows:

	Year Ended December 31,
	2022		2021		2020
Provision (benefit) for income taxes	(In millions)
Current
Federal	$	27.5	$	20.2	$	11.0
State	5.5		4.6		3.1
Foreign	1.8		1.4		1.3
	34.8		26.2		15.4
Deferred
Federal	(3.8)		(2.3)		(17.3)
State	2.7		0.2		(2.7)
	(1.1)		(2.1)		(20.0)
Provision (benefit) for income taxes	$	33.7	$	24.1	$	(4.6)

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,
	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Non-deductibility of goodwill	0.8		—		(17.9)
Non-deductibility of officer's compensation	2.9		2.2		(0.9)
State and other taxes, net of federal tax benefit	3.1		3.1		1.2
Excess tax deficiencies or benefits	(0.5)		(7.1)		0.1
Change in unrecognized tax benefits	—		(0.1)		2.0
Change in valuation allowance	(0.3)		0.5		(1.5)
Changes in tax rates and state tax laws	3.4		0.2		(0.4)
General business credits	(1.4)		(0.9)		0.8
Other	0.3		0.8		(0.2)
Effective tax rate	29.3	%	19.7	%	4.2	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets (liabilities) at December 31, 2022 and 2021 consisted of the following components:

	2022		2021
	(In millions)
Lease liabilities	$	93.6	$	112.9
Employee compensation	9.7		12.1
Revenue recognition	37.1		35.4
Other	8.4		8.4
Deferred tax assets	148.8		168.8
Valuation allowance	(3.5)		(4.2)
Total deferred tax assets after valuation allowance	145.3		164.6
Recognition of franchise and equipment sales	(6.7)		(8.2)
Capitalization and depreciation(1)	(121.0)		(122.7)
Lease assets	(90.8)		(108.6)
Other	(1.5)		(1.3)
Deferred tax liabilities	(220.0)		(240.8)
Net deferred tax liabilities	$	(74.7)	$	(76.2)

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

Summary of Income Tax Contingencies

	Year Ended December 31,
	2022		2021		2020
	(In millions)
Unrecognized tax benefit as of January 1	$	1.9	$	2.2	$	7.6
Changes for tax positions of prior years	0.1		0.5		—
Increases for tax positions related to the current year	0.4		0.3		0.2
Decreases relating to settlements and lapsing of statutes of limitations	(0.3)		(1.1)		(5.6)
Unrecognized tax benefit as of December 31	$	2.1	$	1.9	$	2.2