News

Applebee's reaches an agreement with the IRS

Applebee's-IRS agreement adds $26M to company cash flow.

October 27, 2004

Applebee's-IRS agreement adds $26M to company cash flow. Applebee's International Inc. has reached an agreement with the Internal Revenue Service regarding the accelerated depreciation of assets for its stores, company spokeswoman Carol DiRaimo said late Wednesday. The pre-filing agreement has resulted in an increase in cash flow of more than $26 million so far this year, DiRaimo said. Through the agreement, the company and the IRS were able to determine before Applebee's filed its 2003 tax return how newly issued IRS guidance should be applied to all new and remodeled Applebee's stores opened last year. Overland Park-based Applebee's (Nasdaq: APPB) said the pre-filing agreement is the first of its kind in the restaurant industry. "This PFA provides the company and our shareholders a level of financial certainty that has traditionally not been available to a company until it has been audited by the IRS ...," Applebee's CFO Steve Lumpkin said in a written release. "I compliment the IRS on the creation of a process that can be a winner for both the taxpayers and the government."