Papa Johns 2002 Annual Report Download - page 54

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53
6. Impairment or Disposal of Long-Lived Assets
The following table summarizes restaurant divestiture and other asset disposition and valuation activity
during 2002, 2001 and 2000 (dollars in thousands):
2002 2001 2000
Number of restaurants sold 10 49 7
Cash proceeds received 130$ 6,732$ 170$
Notes receivable from franchisees 525 4,485 2,200
Total consideration 655 11,217 2,370
Net book value 758 6,524 1,426
Gain (loss) on restaurants sold (103)$ 4,693$ 944$
Loss on domestic restaurant closures (740)$ (2,888)$ (71)$
Restaurant long-lived asset impairment (208)$ (556)$ -$
Other asset disposals and valuations (2,179)$ (2,360)$ (673)$
The gains (losses) associated with the sale of restaurants, domestic restaurant closures, restaurant long-
lived asset impairment and other asset disposals and valuations are included in pre-opening and other
general expenses in the accompanying consolidated statements of income. See Note 7 for impairment
charges included in special charges in the accompanying consolidated statements of income in 2000.
7. Special Charges
We recorded special charges of $20.9 million in 2000 (none in 2002 or 2001). The special charges were
comprised of the following items (dollars in thousands):
Asset Accrued
Valuation Liabilities Total
Impairment of carrying value of 52 restaurants 6,751$ -$ 6,751$
Impairment or write-off of certain assets,
principally technology assets 6,728 - 6,728
Closure of 13 restaurants 1,866 1,247 3,113
Closing of 20 field offices, severance and
exit costs 635 1,928 2,563
Settlement of vendor litigation - 750 750
Advertising litigation - 1,017 1,017
Total 15,980$ 4,942$ 20,922$