Papa Johns 2011 Annual Report Download - page 71

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66
2. Significant Accounting Policies (continued)
Papa John’s controlled two joint venture arrangements as of December 25, 2011, December 26, 2010 and
December 27, 2009, which were as follows:
Noncontrolling
Restaurants as of Restaurant Papa John's Interest
December 25, 2011 * Locations Ownership * Ownership *
Star Papa, LP 76 Texas 51% 49%
Colonel's Limited, LLC 52 Maryland and Virginia 70% 30%
*The ownership percentages for both joint ventures were the same for the years presented in the
accompanying consolidated financial statements. There were 75 Star Papa, LP restaurants in 2010
and 2009 and 52 Colonel's Limited, LLC restaurants for all three years presented.
The income before income tax attributable to the joint ventures for the last three years is as follows:
(In thousands) 2011 2010 2009
Papa John's International, Inc. 6,184$ 5,658$ 6,171$
Noncontrolling interests 3,732 3,485 3,756
Total income before income tax 9,916$ 9,143$ 9,927$
Year Ended
The noncontrolling interest holders’ equity in the joint venture arrangements totaled $8.6 million as of
December 25, 2011 and $8.5 million as of December 26, 2010.
Modification of our Non-qualified Deferred Compensation Plan
During 2010, we modified the provisions of our non-qualified deferred compensation plan. Previously,
participants who elected an investment in phantom Papa John’s stock were paid in cash upon settlement
of their investment balance. Effective the first quarter of 2010, we began settling future distributions of
the deemed investment balances in Papa John’s stock through the issuance of treasury stock. Accordingly,
during 2010, we reclassified $2.0 million from other long-term liabilities to paid-in capital in the
accompanying consolidated financial statements.
New Accounting Pronouncements
In June 2011, the FASB issued ASU No. 2011-05,
Comprehensive Income: Presentation of
Comprehensive Income
. In accordance with the new guidance, an entity will no longer be permitted to
present comprehensive income in its consolidated statements of stockholders’ equity. Instead, entities will
be required to present components of comprehensive income in either one continuous financial statement
with two sections, net income and comprehensive income, or in two separate but consecutive statements.
This guidance will be required beginning with our first quarter of fiscal 2012. We do not expect the
adoption of this ASU to have any impact on our operating results.