Papa Johns 2012 Annual Report Download - page 47

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41
Unallocated Corporate Segment. Unallocated corporate expenses decreased $2.5 million in
2011, as compared to prior year. The components of unallocated corporate expenses were as
follows (in thousands):
Year Ended Year Ended
December 25,
2011
December 26,
2010
Increase
(Decrease)
(As Restated) (As Restated)
General and administrative (a) 24,807$ 25,823$ (1,016)$
Net interest (b) 2,300 3,091 (791)
Depreciation 8,021 8,873 (852)
Franchise incentives and initiatives (c) 3,234 6,489 (3,255)
Perfect Pizza lease obligation (d) 832 - 832
Other expense (income) (e) 533 (2,039) 2,572
Total unallocated corporate expenses 39,727$ 42,237$ (2,510)$
(a) The decrease in unallocated corporate general and administrative costs for 2011 was due to
lower short- and long-term incentive compensation costs, and lower sponsorship fees,
partially offset by increased travel costs.
(b) The decrease in net interest expense reflects the decrease in our average outstanding debt
balance and lower interest rates. This was somewhat offset by the increased interest expense
in 2011 associated with the increase in redemption value of noncontrolling interest in a joint
venture whose noncontrolling interest is deemed mandatorily redeemable. See “Notes 2, 3, 4
and 22” of the “Notes to Consolidated Financial Statements” for additional information.
(c) In 2010, we provided discretionary contributions to the PJMF and other local advertising
cooperatives. In 2011, we offered incentives to domestic franchisees for meeting certain sales
targets, including driving comparable sales, transactions and online sales.
(d) The Perfect Pizza lease obligation relates to rents, taxes and insurance associated with the
former Perfect Pizza operations in the United Kingdom.
(e) The increase in other expense (income) is primarily due to increases in our online customer
loyalty program costs and disposition and valuation-related costs.