Papa Johns 2011 Annual Report Download - page 74

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69
5. Goodwill
The following summarizes changes to the Company’s goodwill, by reporting segment (in thousands):
Domestic
Company-
owned
Restaurants International *
All
Others Total
Balance as of December 27, 2009 55,260$ 19,370$ 436$ 75,066$
Foreign currency adjustments - (369) - (369)
Balance as of December 26, 2010 55,260 19,001 436 74,697
Foreign currency adjustments - 388 - 3 8 8
Balance as of December 25, 2011 55,260$ 19,389$ 436$ 75,085$
* The international goodwill balances for all years presented are net of accumulated impairment
of $2.3 million associated with our PJUK reporting unit.
Starting in 2011 the Company elected to early adopt the provisions of ASU 2011-08 with respect to our
domestic Company-owned restaurants and China reporting unit, which is included in our international
reporting segment, while we performed the quantitative goodwill impairment test for our PJUK reporting
unit. For our 2010 and 2009 annual goodwill impairment assessments the Company performed the
quantitative goodwill impairment test for all reporting units. Upon completion of our goodwill
impairment tests in 2011, 2010 and 2009, no impairment charges were recorded. See Notes 4 and 6 for
discussions of acquisitions and dispositions of Company-owned restaurants.
6. Restaurant Impairment and Dispositions
The following table summarizes restaurant impairment and disposition losses (gains) included in other
general expenses in the accompanying consolidated statements of income during 2011, 2010 and 2009
(in thousands):
2011 2010 2009
Net book value of divested restaurants -$ 2,828$ 659$
Cash proceeds received - 1,397 8 3 0
Fair value of notes receivable (1) - 1,431 3 1 2
Total consideration at fair value (1) - 2,828 1,142
Gain on restaurants sold - - (483)
(Gain) loss on domestic restaurant closures (203) 95 1,140
Adjustment to long-lived asset impairment reserves 117 158 -
Total restaurant impairment and disposition (gains) losses (86)$ 253$ 657$
(1)
We sold 12 Company-owned restaurants to franchisees in 2010 and 2009. As a part of the
agreements to sell the restaurants, we received notes receivable totaling $1.4 million in 2010 and
$500,000 (fair value of $312,000) in 2009.