Papa Johns 2005 Annual Report Download - page 43

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41
December 25, 2005, compared to $94.2 million, including $15.7 million associated with BIBP and other
consolidated VIEs, at December 26, 2004.
Contractual obligations and payments as of December 25, 2005 due by year are as follows (in
thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Contractual Obligations:
Long-term debt -$ 16$ -$ -$ 16$
Revolving line of credit (1) - - 49,000 - 49,000
Total debt - 16 49,000 - 49,016
Operating leases 21,945 33,672 22,281 27,286 105,184
Total contractual obligations 21,945$ 33,688$ 71,281$ 27,286$ 154,200$
Payments Due by Period
(1) Excludes a fair value adjustment of $583,000 included in other long-term liabilities in the
consolidated balance sheet related to our interest rate swaps that hedge against the effect of rising
interest rates on forecasted future borrowings.
As a result of assigning our interest in obligations under real estate leases as a condition to the sale of
certain Company-owned restaurants, we remain contingently liable for payment under the lease
agreements. These leases have varying terms, the latest of which expires in 2016. As of December 25,
2005 and December 26, 2004, the potential amount of undiscounted payments we could be required to
make in the event of non-payment by the primary lessee were $1.5 million and $1.9 million, respectively.
Our franchisees are the primary lessees under the vast majority of these leases. We generally have cross-
default provisions with these franchisees that would put them in default of their franchise agreement in
the event of non-payment under the lease. We believe these cross-default provisions significantly reduce
the risk that we will be required to make payments under these leases. Accordingly, the liability recorded
for our exposure under such leases at December 25, 2005 and December 26, 2004 was not significant.
We have certain other commercial commitments where payment is contingent upon the occurrence of
certain events. Such commitments include the following by year (in thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Other Commercial Commitments:
Standby letters of credit 37,950$ -$ -$ -$ 37,950$
Amount of Commitment Expiration Per Period
See “Notes 9, 12 and 17” of “Notes to Consolidated Financial Statements” for additional information
related to contractual and other commitments.