Papa Johns 2010 Annual Report Download - page 85

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78
7. Debt and Credit Arrangements (continued)
The following tables provide information on the location and amounts of our swaps in the accompanying
consolidated financial statements (in thousands):
Fair Values of Derivative Instruments
Balance Sheet Location
Fair Value
2010
Fair Value
2009
Derivatives designated as hedging
instruments:
Interest rate swaps Other long-term liabilities 313$ 4,044$
There were no derivatives that were not designated as hedging instruments under the provisions of the ASC topic,
Derivatives and Hedging.
Liability Derivatives
Effect of Derivative Instruments on the Consolidated Financial Statements
Derivatives -
Cash Flow
Hedging
Relationships
Amount of Gain
or (Loss)
Recognized in
Accumulated
OCI on
Derivative
(Effective
Portion)
Location of Gain
or (Loss)
Reclassified
from
Accumulated
OCI into Income
(Effective
Portion)
Amount of Gain
or (Loss)
Reclassified
from
Accumulated
OCI into Income
(Effective
Portion)
Location of Gain
or (Loss)
Recognized in
Income on
Derivative
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Amount of Gain
or (Loss)
Recognized in
Income on
Derivative
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)*
Interest rate swaps:
2010 2,404$ Interest expense (4,131)$ Interest expense (25)$
2009 1,388$ Interest expense (4,037)$ Interest expense (40)$
2008 (2,650)$ Interest expense (1,964)$ Interest expense -$
*A portion of our second interest rate swap became over-hedged in 2009 since the outstanding debt balance
associated with this swap was $49 million (floating rate debt of the swap is $50 million).
The weighted average interest rates for our Credit Facility, including the impact of the previously
mentioned swap agreements, were 5.2%, 4.8% and 5.0% in fiscal 2010, 2009 and 2008, respectively.
Interest paid, including payments made or received under the swaps, was $5.4 million in 2010, $5.5
million in 2009 and $7.4 million in 2008. The $313,000 liability associated with the interest rate swaps
will be reclassified into earnings during the first quarter of 2011 (both swaps expired in January 2011).