Papa Johns 2002 Annual Report Download - page 58

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57
11. Insurance Reserves (continued)
In addition, beginning in October 2000, our wholly owned captive insurance subsidiary, RSC, began
providing insurance coverage to franchisees that elect to participate. The insurance provided by the
captive insurance subsidiary is principally workers compensation, general liability, property and owned
and non-owned automobile programs.
The Company’s estimated liability for losses associated with the franchise insurance program are $8.3
million at December 29, 2002 and $3.9 million at December 30, 2001, and are included in other long-term
liabilities in the accompanying consolidated balance sheets. Investments of $7.7 million for 2002 and $3.4
million for 2001 are held by the captive insurance subsidiary to fund these estimated liabilities and are
classified as long-term investments in the accompanying consolidated balance sheets.
We are a party to stand-by letters of credit with off-balance sheet risk associated with our insurance
programs and with RSC. The total amount committed under letters of credit for these programs was $9.5
million at December 29, 2002.
12. Accrued Expenses
Accrued expenses consist of the following (in thousands):
2002 2001
Insurance reserves 12,247$ 6,100$
Accrued salaries and benefits 6,847 5,462
Accrued purchases 2,579 3,264
Rent 2,341 2,015
Obsolete inventory and equipment disposals 1,633 189
Restaurant closure reserve 1,256 1,396
Marketing 1,028 872
Utilities 901 879
Accrued interest 464 433
Other 5,362 6,163
Total 34,658$ 26,773$