Applebee's International Enters into PreFiling Agreement with United States Internal Revenue Service.OVERLAND PARK, Kan. -- Applebee's International, Inc. (Nasdaq:APPB APPB Array Processor with Pipelined Bus APPB Application Builder ) announced today that it has entered into a PreFiling Agreement ("PFA PFA Pacific Film Archive PFA Professional Footballers Association PFA Paraformaldehyde PFA Predictive Failure Analysis PFA Perfluoroalkoxy PFA Protection From Abuse PFA Parent-Faculty Association PFA Popular Flying Association ") with the United States Internal Revenue Service ("IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ") for federal tax depreciation, the first of its kind relating to this issue in the restaurant industry. The PFA process gave Applebee's and the IRS the opportunity to determine the application of newly issued IRS guidance to all new and remodeled stores opened during 2003 before filing its 2003 income tax return. The result was an increase in cash flow due to accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. of restaurant assets and corresponding deferral of income taxes. Steve Lumpkin, Applebee's Chief Financial Officer, was extremely pleased that the company and IRS were able to work jointly to complete the PFA. "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." Citing as reasons for the PFA success the quality of the teams involved and the effectiveness of the PFA process, Lumpkin noted, "The IRS professionals who worked on our PFA understood the law, our company and our industry. I compliment the IRS on the creation of a process that can be a winner for both the taxpayers and the government. We were also fortunate to have KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen LLP LLP - Lower Layer Protocol as advisors in this unique undertaking. Their specialized experience was invaluable to us in completing the PFA expeditiously and efficiently." Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar brand, the largest casual dining concept in the world. As of October 24, 2004, there were 1,633 Applebee's restaurants operating system-wide in 49 states and 10 international countries. Additional information on Applebee's International can be found at the company's website (www.applebees.com). |
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