Papa Johns 2012 Annual Report Download - page 54

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48
See “Note 9” of “Notes to Consolidated Financial Statements” for additional information concerning
our debt and credit arrangements.
The above table does not include $3.4 million of unrecognized tax benefits since we are not able to make
reasonable estimates of the period of cash settlement with respect to the taxing authority. Additionally,
the above table does not include $18.2 million of redeemable and mandatorily redeemable noncontrolling
interests as we are not able to predict the timing of the redemptions.
Off-Balance Sheet Arrangements
The off-balance sheet arrangements that are reasonably likely to have a current or future effect on the
Company’s financial condition are operating leases of Company-owned restaurant sites, QC Centers,
office space and transportation equipment.
We guarantee leases for certain Papa John’s domestic franchisees, who purchased restaurants that were
previously Company-owned, as well as in the United Kingdom in connection with the 2006 sale of our
former Perfect Pizza operations. We are contingently liable on these leases. These leases have varying
terms, the latest of which expires in 2018. As of December 30, 2012, the estimated maximum amount of
undiscounted payments the Company could be required to make in the event of nonpayment by the
primary lessees was $4.7 million, net of amounts reserved of approximately $300,000 related to the
Perfect Pizza operations. No liability has been recorded related to the other guarantees.
We have certain other commercial commitments where payment is contingent upon the occurrence of
certain events. Such commitments include the following by year (in thousands):
Less than 1-3 3-5 After
1 Year Years Years 5 Years Total
Other Commercial Commitments:
Standby letters of credit 19,931$ -$ -$ -$ 19,931$
Amount of Commitment Expiration Per Period
See “Notes 9, 12 and 17” of “Notes to Consolidated Financial Statements” for additional information
related to contractual and other commitments.