Papa Johns 1998 Annual Report Download - page 46

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Range of Number of Weighted-Average Weighted-Average
Exercise Prices Options Exercise Price Remaining Life
Outstanding options: $ 5.78 - $ 9.99 143 $ 6.24 4.56
10.00 - 19.99 916 16.17 6.67
20.00 - 29.99 1,700 26.44 7.96
30.00 - 44.00 3,023 34.53 9.08
Total 5,782 $ 28.54 8.26
Exercisable options: $ 5.78 - $ 9.99 135 $ 6.06
10.00 - 19.99 604 16.12
20.00 - 29.99 552 27.19
30.00 - 44.00 941 33.65
Total 2,232 $ 25.64
As of December 27, 1998, contingent upon approval by our stockholders of the amendments to the
Incentive Plan and Directors Plan described above, 50,000 shares were available for future issuance under
the Incentive Plan, and 106,750 shares were available for future issuance under the Directors Plan.
13. Defined Contribution Benefit Plan
We have established the Papa John’s International, Inc. 401(k) Plan (the “Plan”), as a defined contribution
benefit plan, in accordance with Section 401(k) of the Internal Revenue Code. The Plan is open to all
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.
Administrative costs of the Plan are paid by us and are not significant.
14. Segment Information
Effective at the beginning of 1998 we adopted SFAS No. 131, “Disclosures about Segments of an
Enterprise and Related Information,” which superseded SFAS No. 14, “Financial Reporting for Segments
of a Business Enterprise.” SFAS No. 131 establishes standards for the way we report information about
operating segments in our financial statements and for related disclosures about products and services,
geographical areas, and major customers. The adoption did not affect our results of operations or
financial position, but did affect the disclosure of segment information.
We have defined three reportable segments: restaurants, commissaries, and franchising. The restaurant
segment consists of the operations of all Company-owned restaurants and derives its revenues from retail
sales of pizza, breadsticks, cheesesticks and soft drinks to the general public. The commissary segment
consists of the operations of our regional dough production and product distribution centers and derives
its revenues from the sale and distribution of food and paper products to Company-owned and
franchised restaurants. The 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. All other business units that do not meet the quantitative thresholds for determining
reportable segments consist of operations that derive revenues from the sale of restaurant equipment,
printing and promotional items, risk management services, and information systems and related services
used in restaurant operations principally to Company-owned and franchised restaurants.
Generally, we evaluate performance and allocate resources based on profit or loss from operations before
income taxes and eliminations. Certain administrative and capital costs are allocated to segments based
upon predetermined rates or actual estimated resource usage. The accounting policies of the segments
are the same as those described in the summary of significant accounting policies. We account for
intercompany sales and transfers as if the sales or transfers were to third parties and eliminate the related
profit in consolidation.