Papa Johns 2010 Annual Report Download - page 61

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54
The outstanding principal balance under our revolving line of credit decreased from $123.5 million in
2008 to $99.0 million in 2009 and remained at $99.0 million throughout 2010.
Total 2011 capital expenditures are expected to approximate $35 to $40 million and will include $6 to $8
million for re-image costs at Company-owned restaurants in connection with a domestic system-wide re-
image program.
We expect to fund the planned capital expenditures and any additional share repurchases of our common
stock for the next twelve months from our cash on hand and operating cash flow. Our total debt was
$99.0 million at December 26, 2010 and December 27, 2009 (no outstanding third party BIBP debt at
December 26, 2010 and December 27, 2009).
Contractual obligations and payments as of December 26, 2010 due by year are as follows (in
thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Contractual Obligations:
Long-term debt -$ 17$ -$ -$ 17$
Revolving line of credit (1) - - 99,000 - 99,000
Total debt - 17 99,000 - 99,017
Operating leases 27,792 44,738 27,190 23,883 123,603
Total contractual obligations 27,792$ 44,755$ 126,190$ 23,883$ 222,620$
Payments Due by Period
(1)
Excludes a fair value adjustment of approximately $300,000 included in other long-term liabilities in
the consolidated balance sheet related to our interest rate swaps that hedge against the effect of rising
interest rates on forecasted future borrowings.
The above table does not include $3.3 million of unrecognized tax benefits since we are not able to make
reasonable estimates of the period of cash settlement with respect to the taxing authority.
Off-Balance Sheet Arrangements
The off-balance sheet arrangements that are reasonably likely to have a current or future effect on the
Company’s financial condition are leases of Company-owned restaurant sites, QC Centers, office space
and transportation equipment.
In connection with the 2006 sale of our former Perfect Pizza operations in the United Kingdom, we
remain contingently liable for payment under approximately 56 lease arrangements, primarily associated
with Perfect Pizza restaurant sites for which the Perfect Pizza franchisor is primarily liable. The leases
have varying terms, the latest of which expires in 2017. The potential amount of undiscounted payments
we could be required to make in the event of non-payment by Perfect Pizza and associated franchisees is
approximately $4.3 million. We have not recorded a liability with respect to such leases as of December
26, 2010, as our cross-default provisions with the Perfect Pizza franchisor substantially reduce the risk
that we will be required to make payments under these leases at the present time.