Papa Johns 2002 Annual Report Download - page 67

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66
20. Segment Information (continued)
(1) The decrease in total depreciation and amortization in 2002 is primarily due to the adoption of SFAS No. 142. In
accordance with SFAS No. 142, we no longer amortize goodwill and intangible assets with indefinite useful lives (see
Notes 2 and 5). Goodwill amortization expense recorded by segment for 2001 and 2000 was as follows (in thousands):
2001 2000
Domestic restaurants 1,248$ 1,299$
International 1,416 1,516
All others 134 101
Total 2,798$ 2,916$
(2) The special charges and provision for uncollectible notes receivable charge for 2002, 2001 and 2000 (see Notes 7 and 10)
were included in the following segments (in thousands):
2002 2001 2000
Domestic restaurants -$ -$ 12,920$
Domestic commissaries - - 750
All others - - 256
Unallocated corporate expenses 2,838 537 11,196
Total 2,838$ 537$ 25,122$
(3) The increase in domestic restaurants income before income taxes in 2002 as compared to 2001 is primarily due to
operating margin improvements resulting from favorable commodity costs (primarily boxes and meats) and a higher
average sales price point in 2002. The increase in 2001 as compared to 2000 is primarily due to 2000 including special
charges of $12.9 million (none in 2001).
(4) The increase in unallocated corporate expense in 2002 as compared to 2001 is primarily due to an increase in insurance
costs of $1.8 million, quality initiatives implemented in 2002 to improve the customer experience at a cost of $1.1
million, an increase in the provision for uncollectible notes receivable of $2.3 million, and the recognition of a $1.7
million loss in connection with a terminated vendor relationship. The decrease in 2001 as compared to 2000 is primarily
due to the $10.7 million decrease in the special charges and the provision for uncollectible notes receivable.
21. Quarterly Data (unaudited, in thousands, except per share data)
2002 2001 2002 2001 2002 2001 2002 2001
Total revenues 245,665$ 249,274$ 236,583$ 240,441$ 227,853$ 241,365$ 236,118$ 243,992$
Operating income 22,124 22,452 21,505 21,940 18,344 18,368 19,454 20,023
Net income 12,871 12,753 12,387 12,513 10,463 10,451 11,076 11,528
Basic earnings per common
share 0.60$ 0.56$ 0.60$ 0.56$ 0.53$ 0.46$ 0.60$ 0.51$
Earnings per common share -
assuming dilution 0.60$ 0.56$ 0.59$ 0.55$ 0.53$ 0.46$ 0.59$ 0.51$
Quarter
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