Papa Johns 2004 Annual Report Download - page 38

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37
Contractual obligations and payments as of December 26, 2004 due by year are as follows (in
thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Contractual Obligations:
Long-term debt -$ 21$ -$ -$ 21$
Revolving line of credit (1) - 78,500 - - 78,500
Total debt - 78,521 - - 78,521
Operating leases 23,018 36,567 22,106 30,147 111,838
Total contractual obligations 23,018$ 115,088$ 22,106$ 30,147$ 190,359$
Payments Due by Period
(1) Excludes a fair value adjustment of $1.8 million included in other long-term liabilities in the
consolidated balance sheet related to our interest rate swap that hedges against the effects of rising
interest rates on forecasted future borrowings.
We have certain other commercial commitments where payment is contingent upon the occurrence of
certain events. Such commitments include the following by year (in thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Other Commercial Commitments:
Standby letters of credit 30,000$ -$ -$ -$ 30,000$
Amount of Commitment Expiration Per Period
See “Notes 8, 11 and 16” of “Notes to Consolidated Financial Statements” for additional information
related to contractual and other commitments.
The contractual obligations above exclude the debt, operating leases and other commercial commitments
associated with VIEs. The third-party creditors and landlords do not have any recourse to Papa John’s.
Impact of Inflation
We do not believe inflation has materially affected earnings during the past three years. Substantial
increases in costs, particularly commodities, labor, benefits, insurance, utilities and fuel, could have a
significant impact on us.