Papa Johns 2014 Annual Report Download - page 84

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71
7. Acquisitions (continued)
In September 2012, Papa John’s and a third party formed a limited liability company (PJ Denver, LLC) to
operate the previously acquired Denver restaurants. The Company’s equity (60% ownership) in the
operations was funded by the contribution of the acquired restaurants and cash (total value of $2.5
million), while the third party’s equity (40% ownership) was funded by a cash contribution of $1.7
million. There was no gain or loss on this transaction. We are required to fully consolidate the financial
results of this limited liability company. See Note 6 for additional information.
8. Goodwill
The following summarizes changes to the Company’s goodwill, by reporting segment (in thousands):
Domestic
Company-
owned
Restaurants
International (a)
All
Others
Total
Balance as of December 30, 2012 58,567$ 19,955$ 436$ 78,958$
Foreign currency adjustments - 433 - 433
Balance as of December 29, 2013 58,567 20,388 436 79,391
Acquisitions (b) 3,661 - - 3,661
Divestitures (c) - (47) - (47)
Foreign currency adjustments - (998) - (998)
Balance as of December 28, 2014 62,228$ 19,343$ 436$ 82,007$
(a) The international goodwill balances for all years presented are net of accumulated impairment of $2.3
million associated with our PJUK reporting unit, which was recorded in fiscal 2008.
(b) Includes 13 restaurants located in three domestic markets.
(c) Includes four restaurants located in the China market.
For fiscal year 2014, we performed a quantitative analysis on each reporting unit. For fiscal years 2012
and 2013, we performed qualitative analyses for our domestic Company-owned restaurants and our China
reporting unit and quantitative analyses for our PJUK reporting unit. Upon completion of our goodwill
impairment tests in 2012-2014, no impairment charges were recorded.