Papa Johns 2007 Annual Report Download - page 84

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77
7. Goodwill and Other Intangible Assets
Our consolidated balance sheets include $86.5 million and $67.4 million of goodwill at December 30,
2007 and December 31, 2006, respectively, net of accumulated amortization of $6.2 million in 2007 and
2006. The changes in the carrying amount of goodwill by reportable segment for the years ended
December 30, 2007 and December 31, 2006 are as follows:
Variable
Domestic Interest All
(in thousands) Restaurants International Entities Others Total
Balance as of December 25, 2005 22,880$ 18,102$ 460$ 436$ 41,878$
Acquisitions 22,546 3,592 - - 26,138
Sale of Perfect Pizza - (942) - - (942)
Final adjustments to 2005 acquisitions 283 - - - 283
Balance as of December 31, 2006 45,709 20,752 460 436 67,357
Acquisitions 19,173 - - - 19,173
Other (16) (4) (5) - (25)
Balance as of December 30, 2007 64,866$ 20,748$ 455$ 436$ 86,505$
See Notes 4, 6 and 8 for discussions of acquisitions and dispositions of Company-owned restaurants.
8. Restaurant Closure, Impairment and Dispositions
The following table summarizes restaurant closure, impairment and disposition losses (gains) included
in minority interests and other general expenses in the accompanying consolidated statements of income
during 2007, 2006 and 2005:
(in thousands) 2007 2006 2005
Cash proceeds received (1) 632$ -$ 11,000$
Notes receivable from franchisees - - 1,300
Total consideration (1) 632 - 12,300
Net book value 680 - 10,137
Loss (gain) on restaurants sold 48 - (2,163)
Loss on domestic restaurant closures and restaurants to be sold (2) 1,800 - -
Gain on lease buyout by landlord (594) - -
Adjustment to long-lived asset impairment reserves 190 (260) 124
Total restaurant closure, impairment and disposition losses (gains) 1,444$ (260)$ (2,039)$
(1) During 2007, we sold four Company-owned restaurants. The total consideration was $632,000 and
the sale of the restaurants resulted in a $48,000 loss.