Papa Johns 2009 Annual Report Download - page 96

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89
14. Related Party Transactions (continued)
We contributed $7.7 million in 2009, $4.9 million in 2008 and $2.0 million in 2007 to the Marketing
Fund as discretionary advertising contributions.
During 2008, a franchise entity that is owned by two executive officers and one former executive officer
of Papa John’s sold two restaurants for $415,000 to an unrelated third-party franchise entity. In addition,
during 2008 a franchise entity that is owned by a member of our Board of Directors sold three restaurants
in two separate transactions for a total of $470,000 to unrelated third-party franchise entities.
See Note 3 for information related to our purchasing arrangement with BIBP.
15. Lease Commitments and Contingencies
We lease office, retail and commissary space under operating leases, which have an average term of five
years and provide for at least one renewal. Certain leases further provide that the lease payments may be
increased annually based on the fixed rate terms or adjustable terms such as the Consumer Price Index.
PJUK, our subsidiary located in the United Kingdom, leases certain retail space, which is primarily
subleased to our franchisees. We also lease the trailers used by our distribution subsidiary, PJFS, for an
average period of eight years. Total lease expense was $24.2 million in 2009, $24.5 million in 2008 and
$22.4 million in 2007, net of sublease payments received.
Future gross lease costs, future expected sublease payments and net lease costs as of December 27, 2009,
are as follows (in thousands):
Future
Expected
Gross Lease Sublease Net Lease
Year Costs Payments Costs
2010 26,412$ 2,781$ 23,631$
2011 23,616 2,815 20,801
2012 19,443 2,607 16,836
2013 14,903 2,367 12,536
2014 11,117 2,140 8,977
Thereafter 23,595 9,063 14,532
Total 119,086$ 21,773$ 97,313$
We subleased certain sites to our Papa John’s franchisees located in the United Kingdom in 2009, 2008
and 2007 and received payments of $2.9 million, $3.0 million and $3.4 million, respectively, which are
netted with international operating expenses.