Papa Johns 2012 Annual Report Download - page 77

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71
6. Acquisitions (continued)
On September 24, 2012, Papa John’s and a third party formed a limited liability company (PJ Denver,
LLC) to operate the previously acquired Denver restaurants. The Company’s equity (60% ownership) in
the operations was funded by the contribution of the acquired restaurants and cash (total value of $2.5
million), while the third party’s equity (40% ownership) was funded by a cash contribution of $1.7
million. There was no gain or loss on this transaction. We are required to fully consolidate the financial
results of this limited liability company and report the redeemable noncontrolling interest as temporary
equity in the section between total liabilities and stockholders’ equity in our consolidated balance sheets.
See Note 4 for additional information.
There were no significant acquisitions or divestitures during 2011 and 2010.
7. Goodwill
The following summarizes changes to the Company’s goodwill, by reporting segment (in thousands):
Domestic
Company-
owned
Restaurants
International (a)
All
Others
Total
Balance as of December 26, 2010 55,260$ 19,001$ 436$ 74,697
Foreign currency adjustments - 388 - 388
Balance as of December 25, 2011 55,260 19,389 436 75,085
Acquisitions (b) 3,943 - - 3,943
Divestitures (636) - - (636)
Foreign currency adjustments - 566 - 566
Balance as of December 30, 2012 58,567$ 19,955$ 436$ 78,958$
(a) The international goodwill balances for all years presented are net of accumulated impairment of $2.3
million associated with our PJUK reporting unit, which was recorded in fiscal 2008.
(b) Includes 56 restaurants located in the Denver and Minneapolis markets and one restaurant in another
market.
For fiscal 2012 and 2011, as permitted by ASU 2011-08, we performed a qualitative analysis for our
domestic Company-owned restaurants and our China reporting unit. For our PJUK reporting unit, which
is included in the international reporting segment, we performed a quantitative analysis. For our 2010
annual goodwill impairment assessments, we performed a quantitative goodwill impairment test for all
reporting units. Upon completion of our goodwill impairment tests in 2012, 2011 and 2010, no
impairment charges were recorded.