Papa Johns 2011 Annual Report Download - page 78

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73
10. Insurance Reserves
Our insurance programs for workers’ compensation, general liability, owned and non-owned automobiles
and health insurance coverage provided to our employees are self-insured up to certain individual and
aggregate reinsurance levels. Losses are accrued based upon undiscounted estimates of the aggregate
retained liability for claims incurred using certain third-party actuarial projections and our claims loss
experience. The estimated insurance claims losses could be significantly affected should the frequency or
ultimate cost of claims significantly differ from historical trends used to estimate the insurance reserves
recorded by the Company. Our estimated corporate insurance reserves totaled $19.3 million in 2011 and
$19.0 million in 2010.
We are a party to standby letters of credit with off-balance sheet risk associated with our insurance
programs. The total amount committed under letters of credit for these programs was $14.4 million at
December 25, 2011.
11. Accrued Expenses
Accrued expenses consisted of the following (in thousands):
2011 2010
Salaries, benefits and bonuses 13,982$ 13,337$
Self-insurance reserves, current 9,215 8,834
Rent 6,242 6,083
Purchases 4,764 4,826
Consulting and professional fees 1,911 1,974
Utilities 1,420 1,557
Customer loyalty program 1,339 200
Marketing 635 1,192
Other 3,300 4,822
Total 42,808$ 42,825$
12. Other Long-term Liabilities
Other long-term liabilities consist of the following (in thousands):
2011 2010
Deferred compensation plan 10,793$ 10,478$
Self-insurance reserves 10,063 10,153
Income tax reserves 3,597 4,351
Captive insurance claims loss reserves 817 1,027
Interest rate swaps - 313
Other 341 282
Total 25,611$ 26,604$