The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable.

Most of the Company’s short-term receivables due from franchisees are derived from royalty, advertising, and other franchise-related fees, and from distributors related to the sale of proprietary products to franchisees through the Company’s network of suppliers and distributors.

Gift card receivable consist primarily of amounts due from third-party vendors. Receivables related to gift card sales are subject to seasonality and usually peak around year-end as a result of the December holiday season.

Notes receivable balances primarily relate to the conversion of certain past due franchisee accounts receivable to notes receivable, cash loans to franchisees for working capital purposes, notes receivable in connection with the sale of IHOP and Applebee's company restaurants, franchise fees and other notes. The notes are typically collateralized by the franchise. A portion of these notes have specific reserves recorded against them amounting to $1.4 million as of March 31, 2025.

Equipment leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant, then franchised the restaurant to a franchisee. Equipment lease contracts are collateralized by the equipment in the restaurant. The estimated fair value of the equipment collateralizing these lease contracts are not deemed to be significant given the very seasoned and mature nature of this portfolio. The weighted average remaining life of the Company’s equipment leases is 2.4 years as of March 31, 2025.

Real estate leases receivable primarily relate to IHOP franchise development activity prior to 2003 when IHOP provided the financing for leasing or subleasing the site. Real estate leases at March 31, 2025 comprised of 15 leases with a weighted average remaining life of 10.3 years, and relate to locations that IHOP is leasing from third parties and subleasing to franchisees.


	March 31, 2025		December 31, 2024
	(In millions)
Accounts receivable	$	79.1	$	72.0
Gift card receivable	5.4		34.7
Notes receivable	16.6		14.7
Financing receivable:
Equipment leases receivable	11.8		13.2
Real estate leases receivable	18.0		18.3
Other receivables	1.2		2.9
	132.2		155.8
Less: allowance for credit losses and notes receivable	(6.7)		(4.7)
	125.4		151.1
Less: current portion	(91.2)		(115.2)
Long-term receivables	$	34.3	$	35.9



	Accounts Receivable		Notes Receivable, short-term		Notes Receivable, long-term		Real estate leases receivable		Equipment leases receivable		Other (1)		Total
	(In millions)
Balance, December 31, 2024	$	3.1	$	0.3	$	0.8	$	0.1	$	0.5	$	0.0	$	4.7
Bad debt expense	1.2		0.3		0.0		0.1		0.0		—		1.7
Advertising provision adjustment	0.6		—		—		—		—		—		0.6
Write-offs	(0.1)		—		—		(0.1)		(0.1)		—		(0.3)

Balance, March 31, 2025	$	4.8	$	0.6	$	0.8	$	0.1	$	0.4	$	0.0	$	6.7

The Company's primary credit quality indicator for all portfolio segments is delinquency. Generally, the notes receivables, leases receivables, equipment receivables, and other receivables (primarily consists of credit card receivables) are not delinquent.



	Notes Receivable, short and long-term		Real estate leases receivable		Equipment leases receivable		Total
	(In millions)
2025	$	2.3	$	—	$	0.1	$	2.4
2024	8.4		1.9		0.3		10.6
2023	5.1		3.3		0.5		8.9
2022	0.5		7.6		—		8.1
2021	0.3		2.1		—		2.4
Prior	0.0		3.1		10.9		14.0
Total	$	16.6	$	18.0	$	11.8	$	46.4