Papa Johns 1999 Annual Report Download - page 60

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Notes to Consolidated Financial Statements (continued)
market prices. PJFS in turn sells cheese to Papa John’s restaurants (Company-owned and franchised) at a set quarterly price. Gains
or losses incurred by BIBP due to differences in the actual market price of cheese purchased and the established quarterly sales price
are factored into determining the price for the following quarter. We have agreed to provide a $17.6 million loan facility to BIBP to
fund cash deficits that may arise. No amounts were advanced under this facility as of December 26, 1999.
10. Income Taxes
A summary of the provision for income taxes (exclusive of the tax effect related to the cumulative effect of accounting change)
follows (in thousands):
1999 1998 1997
Current
Federal $ 22,893 $ 18,849 $ 13,061
State and local 3,781 3,247 2,183
Deferred (federal and state) 1,757 85 528
Total $ 28,431 $ 22,181 $ 15,772
Significant deferred tax assets (liabilities) follow (in thousands):
1999 1998
Unearned development fees $ 2,324 $ 2,387
Unrealized loss on investments 200 142
Accrued expenses 4,069 2,485
Acquired franchise rights 5,245 -
Other 5 304
Total deferred tax assets 11,843 5,318
Valuation allowance related to unrealized loss on investments (131) (142)
Net deferred tax asset 11,712 5,176
Deferred expenses (3,696) (1,976)
Accelerated depreciation (5,599) (5,101)
Unrealized gain on warrant (341) (588)
Other (1,208) (487)
Total deferred tax liabilities (10,844) (8,152)
Net deferred tax asset (liability) $ 868 $ (2,976)
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