Papa Johns 2009 Annual Report Download - page 85

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78
3. Accounting for Variable Interest Entities (continued)
In addition, Papa John’s has extended loans to certain franchisees. Papa John’s was deemed the primary
beneficiary of certain franchise entities in 2009, 2008 and 2007, even though we have no ownership
interest in them. The consolidation of the franchise entities has had no significant impact on Papa John’s
operating results. We expect the adoption of the new guidance required by the ASC’s Consolidation topic
in fiscal 2010 to result in the deconsolidation of these franchise entities.
The following table summarizes the balance sheets for our consolidated VIEs as of December 27, 2009
and December 28, 2008:
(In thousands) BIBP Franchisees Total BIBP Franchisees Total
Assets:
Cash and cash equivalents 3,857$ 2,762$ 6,619$ -$ 70$ 70$
Accounts receivable - Papa John's 469 - 469 4,687 - 4,687
Other current assets 1,917 643 2,560 1,089 55 1,144
Net property and equipment - 6,271 6,271 - 4,314 4,314
Goodwill - 1,409 1,409 - 4,556 4,556
Deferred income taxes 7,064 - 7,064 15,057 - 15,057
Total assets
13,307
$
11,085
$
24,392
$
20,833
$
8,995
$
29,828
$
Liabilities and stockholders' equity (deficit):
Accounts payable and accrued
expenses 1,596$ 1,685$ 3,281$ 5,391$ 381$ 5,772$
Short-term debt - third party - - - 7,075 - 7,075
Short-term debt - Papa John's 24,633 7,716 32,349 35,743 7,991 43,734
Total liabilities 26,229 9,401 35,630 48,209 8,372 56,581
Stockholders' equity (deficit) (12,922) 1,684 (11,238) (27,376) 623 (26,753)
Total liabilities and stockholders'
equity (deficit)
13,307
$
11,085
$
24,392
$
20,833
$
8,995
$
29,828
$
December 27, 2009 December 28, 2008
4. Acquisitions
We acquired 63 Papa John’s restaurants during 2007 as summarized below (dollars in thousands).
Acquistion Number of Cash Recorded
Month Location Restaurants Paid Goodwill
2007
Period 2 Pennsylvania 4 1,000$ 779$
Period 4 Georgia 13 7,400 6,465
Period 7 Missouri and Kansas 31 10,306 7,266
Period 8 Maryland 11 6,062 4,663
Other 4 215 -
Total 2007*
63
24,983
$
19,173
$
*Substantially all of the remaining purchase price was allocated to acquired property and equipment.