Papa Johns 2004 Annual Report Download - page 63

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62
16. Lease Commitments and Contingencies (continued)
Future gross lease costs, future expected sublease payments and net lease costs are as follows (in
thousands): Future
Expected
Gross Lease Sublease Net Lease
Year Costs Payments Costs
2005 23,018$ 4,594$ 18,424$
2006 20,402 4,790 15,612
2007 16,165 4,380 11,785
2008 12,541 4,075 8,466
2009 9,565 3,703 5,862
Thereafter 30,147 15,738 14,409
Total 111,838$ 37,280$ 74,558$
We subleased 157 sites in 2004, 180 sites in 2003 and 178 sites in 2002 to our franchisees located in the
United Kingdom and received payments of $5.0 million, $4.3 million and $3.7 million, which are netted
with international operating expenses. Total rent expense was $19.8 million in 2004, $18.0 million in
2003 and $17.6 million in 2002, net of subleased payments received.
We are subject to claims and legal actions in the ordinary course of business. We believe that all such
claims and actions currently pending against us are either adequately covered by insurance or would not
have a material adverse effect on us if decided in a manner unfavorable to us.
During 2003, we recognized $2.0 million of income from the settlement of a litigation matter, recorded as
a reduction in other general expenses in the accompanying consolidated statements of income.
17. Share Repurchase Program
The Papa John’s Board of Directors has authorized the repurchase of up to $450.0 million of common
stock under a share repurchase program that began December 9, 1999, and runs through December 25,
2005. Funding for the share repurchase program has been provided through a credit facility, operating
cash flow, stock option exercises and the liquidation of available investments, cash and cash equivalents.
Through December 26, 2004, a total of 15.7 million shares with an aggregate cost of $420.5 million and
an average price of $26.76 per share have been repurchased under this program and placed in treasury.
Subsequent to year-end (through March 1, 2005), an additional 373,000 shares with an aggregate cost of
$12.8 million were repurchased.