Assets Held for Sale

6 Months Ended

Jun. 30, 2011

Assets Held for Sale

Assets Held for Sale

4. Assets Held for Sale

The Company classifies assets as held for sale and ceases the depreciation and amortization of the assets when there is a plan for disposal of the assets and those assets meet the held for sale criteria, as defined in applicable U.S. GAAP. The balance of assets held for sale at December 31, 2010 of $37.9 million was comprised of assets of 36 Applebee’s company-operated restaurants in the St. Louis market area, 30 Applebee’s company-operated restaurants in the Washington, D.C. market, three parcels of land on which Applebee’s franchised restaurants are situated, three parcels of land previously intended for future restaurant development and one IHOP restaurant held for refranchising.

During the six months ended June 30, 2011, 36 Applebee’s company-operated restaurants in the St. Louis market area, 29 Applebee’s company-operated restaurants in the Washington, D.C. market and one parcel of land on which an Applebee’s franchised restaurant is situated were sold and the IHOP restaurant held for sale as of December 31, 2010 was refranchised. In May 2011, the Company entered into an agreement for the refranchising and sale of related restaurant assets of 66 Applebee’s company-operated restaurants located in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont and parts of New York. Accordingly, $35.4 million, representing the net book value of the assets related to these restaurants, was transferred to assets held for sale. During the six months ended June 30, 2011, assets related to an additional IHOP franchise restaurant held for refranchising were also transferred to assets held for sale. The balance of assets held for sale at June 30, 2011 of $42.7 million was comprised of 66 Applebee’s company-operated restaurants located in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont and parts of New York, two parcels of land on which Applebee’s franchised restaurants are situated, three parcels of land previously acquired and held for future development, assets of one Applebee’s company-operated restaurant in the Washington, D.C. area and one IHOP restaurant held for refranchising.

The following table summarizes the changes in the balance of assets held for sale during 2011:

	(In millions)
Balance December 31, 2010	$	37.9
Assets transferred to held for sale	36.3
Assets sold	(31.0		)
Other	(0.5		)
Balance June 30, 2011	$	42.7