Papa Johns 2012 Annual Report Download - page 80

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74
9. Debt and Credit Arrangements (continued)
Effect of Derivative Instruments on the Consolidated Financial Statements
Derivatives -
Cash Flow
Hedging
Relationships
Amount of Gain
or (Loss)
Recognized in
Accumulated
OCI on
Derivative
(Effective
Portion)
Location of Gain
or (Loss)
Reclassified
from
Accumulated
OCI into Income
(Effective
Portion)
Amount of Gain
or (Loss)
Reclassified
from
Accumulated
OCI into Income
(Effective
Portion)
Location of Gain
or (Loss)
Recognized in
Income on
Derivative
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Amount of Gain
or (Loss)
Recognized in
Income on
Derivative
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Interest rate swaps:
2012 (72)$ Interest expense (150)$ Interest expense -$
2011 165$ Interest expense (341)$ Interest expense 65$
2010 2,404$ Interest expense (4,131)$ Interest expense (25)$
The weighted average interest rates for the credit facilities, including the impact of the previously
mentioned swap agreements, were 1.3%, 1.9% and 5.2% in fiscal 2012, 2011 and 2010, respectively.
Interest paid, including payments made or received under the swaps, was $967,000 in 2012, $1.6 million
in 2011 and $5.4 million in 2010. As of December 30, 2012, the $104,000 liability associated with the
interest rate swap was expected to be reclassified into earnings in 2013. Subsequent to year end (effective
December 31, 2012), we amended our interest rate swap agreement with a notional amount of $50.0
million to extend the maturity date through December 30, 2015. The amendment resulted in a change to
the fixed rate of interest (to 0.55% from 0.53%) but did not impact the notional amount of the interest rate
swap agreement.
10. Net Property and Equipment
Net property and equipment consists of the following (in thousands):
2012 2011
Land 32,776$ 32,735$
Buildings and improvements 86,219 85,907
Leasehold improvements 96,652 90,855
Equipment and other 249,055 231,059
Construction in progress 23,262 5,159
Total property and equipment 487,964 445,715
Less accumulated depreciation and amortization (291,303) (263,805)
Net property and equipment 196,661$ 181,910$