Papa Johns 2014 Annual Report Download - page 96

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83
19. Employee Benefit Plans
We have established the Papa John’s International, Inc. 401(k) Plan (the “401(k) Plan”), as a defined
contribution benefit plan, in accordance with Section 401(k) of the Internal Revenue Code. The 401(k)
Plan is open to employees who meet certain eligibility requirements and allows participating employees
to defer receipt of a portion of their compensation and contribute such amount to one or more investment
funds. At our discretion, we may make matching contribution payments, which are subject to vesting
based on an employee’s length of service with us.
In addition, we maintain a non-qualified deferred compensation plan available to certain employees and
directors. Under this plan, the participants may defer a certain amount of their compensation, which is
credited to the participants’ accounts. The participant-directed investments associated with this plan are
included in other long-term assets ($18.2 million and $16.8 million at December 28, 2014 and December
29, 2013, respectively) and the associated liabilities ($17.6 million and $15.8 million at December 28,
2014 and December 29, 2013, respectively) are included in other long-term liabilities in the
accompanying consolidated balance sheets.
At our discretion, we contributed a matching payment of 1.5%, up to a maximum of 6% deferred, in
2014, 2013 and 2012 of a participating employee’s earnings deferred into both the 401(k) Plan and the
non-qualified deferred compensation plan. Such costs were $734,000 in 2014, $691,000 in 2013 and
$630,000 in 2012.
PJUK, the Company’s United Kingdom subsidiary, provided a pension plan that was frozen in 1999. The
Company recorded expense of $174,000, $60,000 and $154,000 associated with the pension plan for the
fiscal years ended 2014, 2013, and 2012, respectively. The Company transferred the assets and liabilities
for the ten participants in the pension plan to an outside insurance company in 2014. Substantially all of
the $174,000 expensed in 2014 was related to the transfer.
20. Segment Information
We have five reportable segments for all years presented: domestic Company-owned restaurants,
domestic commissaries, North America franchising, international operations, and “all other” units. The
domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is
defined as contiguous United States) Company-owned restaurants and derives its revenues principally
from retail sales of pizza and side items, including breadsticks, cheesesticks, chicken poppers and wings,
dessert items and canned or bottled beverages. The domestic commissary segment consists of the
operations of our regional dough production and product distribution centers and derives its revenues
principally from the sale and distribution of food and paper products to domestic Company-owned and
franchised restaurants. The North America franchising segment consists of our franchise sales and
support activities and derives its revenues from sales of franchise and development rights and collection
of royalties from our franchisees located in the United States and Canada. The international operations
segment principally consists of our Company-owned restaurants in China and distribution sales to
franchised Papa John’s restaurants located in the United Kingdom, Mexico and China and our franchise
sales and support activities, which derive revenues from sales of franchise and development rights and the
collection of royalties from our international franchisees. International franchisees are defined as all
franchise operations outside of the United States and Canada. All other business units that do not meet the
quantitative thresholds for determining reportable segments, which are not operating segments, we refer
to as our “all other” segment, which consists of operations that derive revenues from the sale, principally
to Company-owned and franchised restaurants, of printing and promotional items, risk management
services, and information systems and related services used in restaurant operations, including our point-
of-sale system, online and other technology-based ordering platforms.