Papa Johns 2008 Annual Report Download - page 63

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56
Contractual obligations and payments as of December 28, 2008 due by year are as follows (in
thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Contractual Obligations:
Short-term debt - BIBP 7,075$ -$ -$ -$ 7,075$
Long-term debt - 79 - - 79
Revolving line of credit (1) - 123,500 - - 123,500
Total debt 7,075 123,579 - - 130,654
Operating leases 25,427 42,361 25,707 24,677 118,172
Total contractual obligations 32,502$ 165,940$ 25,707$ 24,677$ 248,826$
Payments Due by Period
(1) Excludes a fair value adjustment of $6.2 million included in other long-term liabilities in the
consolidated balance sheet related to our interest rate swaps that hedge against the effect of rising interest
rates on forecasted future borrowings.
The above table does not include $4.2 million of unrecognized tax benefits since we are not able to make
reasonable estimates of the period of cash settlement with respect to the taxing authority.
Off-Balance Sheet Arrangements
The off-balance sheet arrangements that are reasonably likely to have a current or future effect on the
Company’s financial condition are leases of Company-owned restaurant sites, QC Centers, office space
and transportation equipment.
As a condition of the sale of the Perfect Pizza operations in March 2006, we remain contingently liable
for payment under approximately 70 lease arrangements as of December 28, 2008, primarily associated
with Perfect Pizza restaurant sites. The leases have varying terms, the latest of which expires in 2017. As
of December 28, 2008, the potential amount of undiscounted payments we could be required to make in
the event of non-payment by the franchisor and franchisee was approximately $6.6 million. We believe
our cross-default provisions with the Perfect Pizza franchisor significantly reduce the risk that we will be
required to make payments under these leases. Accordingly, we have not recorded any liability with
respect to such leases at December 28, 2008.