Papa Johns 2009 Annual Report Download - page 82

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75
2. Significant Accounting Policies (continued)
Shares subject to options to purchase common stock with an exercise price greater than the average
market price for the year were not included in the computation of the dilutive effect of common stock
options because the effect would have been antidilutive. The weighted average number of shares subject
to antidilutive options was 1.4 million in 2009, 1.5 million in 2008 and 895,000 in 2007.
New Accounting Pronouncements
Business Combinations
The Business Combinations topic of the ASC establishes principles and requirements for how an acquirer
in a business combination recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed, and any noncontrolling interest; recognizes and measures the goodwill
acquired in the business combination or a gain from a bargain purchase; and determines what information
to disclose to enable financial statement users to evaluate the nature and financial effects of the business
combination. The latest guidance in the Business Combinations topic of the ASC applies to business
combinations for which the acquisition date is on or after December 15, 2008. The adoption of the new
guidance had no impact on our 2009 consolidated financial statements.
Consolidation
Noncontrolling interests. The Consolidation topic of the ASC requires all entities to report
noncontrolling (minority) interests in subsidiaries as equity in the consolidated financial statements, but
separate from the equity of the parent company. The Consolidation topic further requires that
consolidated net income be reported at amounts attributable to the parent and the noncontrolling interest,
rather than expensing the income attributable to the minority interest holder. Additionally, disclosures are
required to clearly identify and distinguish between the interests of the parent company and the interests
of the noncontrolling owners, including a disclosure on the face of the consolidated statements for
income attributable to the noncontrolling interest holder. The presentation and disclosure requirements
that became effective in 2009 were applied retrospectively for all periods presented, and thus, the prior
year financial statements have been modified to incorporate the new requirements.
Papa John’s had two joint venture arrangements as of December 27, 2009, December 28, 2008 and
December 30, 2007, which were as follows:
Restaurants Noncontrolling
as of Restaurant Papa John's Interest
December 27, 2009 Locations Ownership * Ownership *
Star Papa, LP 75 Texas 51% 49%
Colonel's Limited, LLC 52 Maryland and Virginia 70% 30%
*The ownership percentages were the same for the 2009, 2008 and 2007 years presented in the
accompanying consolidated financial statements.