Papa Johns 2009 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2009 Papa Johns annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

31
been changed throughout this Annual Report on Form 10-K to appropriately reference the Codification.
The consolidated results of the Company were not impacted by this change.
Fair Value Measurements and Disclosures
The Fair Value Measurements and Disclosures topic of the FASB’s ASC requires companies to
determine fair value based on the price that would be received to sell the asset or paid to transfer the
liability to a market participant. The Fair Value Measurements and Disclosures topic emphasizes that fair
value is a market-based measurement, not an entity-specific measurement. The new guideline required a
phase-in approach: (1) phase one was effective for financial assets and liabilities in our first quarter of
2008 and (2) phase two was effective for non-financial assets and liabilities in our first quarter of fiscal
2009. The new provisions did not have a significant impact on our 2008 or 2009 financial statements.
The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of
the following categories:
•
Level 1: Quoted market prices in active markets for identical assets or liabilities.
•
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market
data.
•
Level 3: Unobservable inputs that are not corroborated by market data.
Our financial assets and liabilities that were measured at fair value on a recurring basis as of December
27, 2009 and December 28, 2008 are as follows:
Carrying
(In thousands) Value Level 1 Level 2 Level 3
December 27, 2009
Financial assets:
Investments 1,382$ 1,382$ -$ -$
Non-qualified deferred compensation plan 11,754 11,754 - -
Financial liabilities:
Interest rate swaps 4,044 - 4,044 -
December 28, 2008
Financial assets:
Investments 530$ 530$ -$ -$
Non-qualified deferred compensation plan 8,887 8,887 - -
Financial liabilities:
Interest rate swaps 6,173 - 6,173 -
Fair Value Measurements
Additionally, the adoption for non-financial assets and liabilities in fiscal 2009 did not have a significant
impact on our estimated value related to long-lived and intangible assets, such as our annual fair value
evaluation of our United Kingdom subsidiary, PJUK, and domestic Company-owned restaurants.