Papa Johns 2014 Annual Report Download - page 62

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49
The above table does not include the following:
Unrecognized tax benefits of $2.8 million since we are not able to make reasonable estimates of
the period of cash settlement with respect to the taxing authority.
Redeemable noncontrolling interests of $8.6 million as we are not able to predict the timing of the
redemptions.
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 operating leases of Company-owned restaurant sites, QC Centers,
office space and transportation equipment.
We guarantee leases for certain Papa John’s domestic franchisees, who purchased restaurants that were
previously Company-owned, as well as approximately 25 leases in the United Kingdom in connection
with the 2006 sale of our former Perfect Pizza operations. We are contingently liable on these leases.
These leases have varying terms, the latest of which expires in 2018. As of December 28, 2014, the
estimated maximum amount of undiscounted payments the Company could be required to make in the
event of nonpayment by the primary lessees was approximately $1.1 million.
We have certain other commercial commitments where payment is contingent upon the occurrence of
certain events. Such commitments include the following by year (in thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Other Commercial Commitments:
Standby letters of credit 21,312$ -$ -$ -$ 21,312$
Amount of Commitment Expiration Per Period
We are party to standby letters of credit with off-balance sheet risk associated with our insurance
programs. See “Notes 9, 12 and 17” of “Notes to Consolidated Financial Statements” for additional
information related to contractual and other commitments.