Papa Johns 2013 Annual Report Download - page 56

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฀
48
The฀above฀table฀does฀not฀include฀the฀following:฀
฀
•
Unrecognized฀tax฀benefits฀of฀$2.7฀million฀since฀we฀are฀not฀able฀to฀make฀reasonable฀estimates฀of฀
the฀period฀of฀cash฀settlement฀with฀respect฀to฀the฀taxing฀authority.฀
•
Redeemable฀and฀mandatorily฀redeemable฀noncontrolling฀interests฀of฀$17.8฀million฀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฀ approximately฀ 30฀ leases฀ 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฀29,฀ 2013,฀ the฀
estimated฀maximum฀amount฀of฀undiscounted฀payments฀ the฀Company฀could฀be฀ required฀to฀make฀in฀ the฀
event฀of฀nonpayment฀by฀the฀primary฀lessees฀was฀$2.7฀million,฀net฀of฀amounts฀reserved฀of฀approximately฀
$100,000฀ related฀ to฀ the฀ Perfect฀ Pizza฀ operations.฀ No฀ liability฀ has฀ been฀ recorded฀ related฀ to฀ the฀ other฀
guarantees.฀
฀
We฀ have฀ certain฀ other฀ commercial฀ commitments฀ where฀ payment฀ is฀ contingent฀ upon฀the฀ occurrence฀ of฀
certain฀events.฀Such฀commitments฀include฀the฀following฀by฀year฀(in฀thousands):฀
฀
Less฀than฀ 1-3 3-5 After
1฀Year Years Years 5฀Years Total
Other฀Commercial฀Commitments:
Standby฀letters฀of฀credit 20,710$฀฀฀฀฀ -$฀฀฀฀฀฀฀฀ -$฀฀฀฀฀฀ -$฀฀฀฀฀฀฀ 20,710$฀฀
Amount฀of฀Commitment฀Expiration฀Per฀Period
฀
฀
We฀ are฀ party฀ to฀ standby฀ letters฀ of฀ credit฀ with฀ off-balance฀ sheet฀ risk฀ associated฀ with฀ our฀ insurance฀
programs.฀ See฀ “Notes฀ 9,฀ 12฀ and฀ 17”฀ of฀ “Notes฀ to฀ Consolidated฀ Financial฀ Statements”฀ for฀ additional฀
information฀related฀to฀contractual฀and฀other฀commitments.฀฀
฀
Forward-Looking฀Statements฀
฀
Certain฀ matters฀ discussed฀ in฀ this฀ report,฀ including฀ information฀ within฀ Management’s฀ Discussion฀ and฀
Analysis฀of฀Financial฀Condition฀and฀Results฀of฀Operations฀constitute฀forward-looking฀statements฀within฀
the฀ meaning฀ of฀ the฀ federal฀ securities฀ laws.฀ Generally,฀ the฀ use฀ of฀ words฀ such฀ as฀ “expect,”฀ “estimate,”฀
“believe,”฀ “anticipate,”฀ “will,”฀ “forecast,”฀ “plan,”฀ “project,”฀ or฀ similar฀ words฀ identify฀ forward-looking฀
statements฀ that฀ we฀ intend฀ to฀ be฀ included฀ within฀ the฀ safe฀ harbor฀ protections฀ provided฀ by฀ the฀ federal฀
securities฀ laws.฀ Such฀ forward-looking฀ statements฀ may฀ relate฀ to฀ projections฀ or฀ guidance฀ concerning฀
business฀performance,฀revenue,฀earnings,฀contingent฀liabilities,฀resolution฀of฀litigation,฀commodity฀costs,฀
profit฀ margins,฀ unit฀ growth,฀ capital฀ expenditures,฀ and฀ other฀ financial฀ and฀ operational฀ measures.฀ Such฀
statements฀ are฀ not฀ guarantees฀ of฀ future฀ performance฀ and฀ involve฀ certain฀ risks,฀ uncertainties฀ and฀
assumptions,฀which฀are฀difficult฀to฀predict฀and฀many฀of฀which฀are฀beyond฀our฀control.฀Therefore,฀actual฀
outcomes฀ and฀ results฀ may฀ differ฀ materially฀ from฀ those฀ matters฀ expressed฀ or฀ implied฀ in฀ such฀ forward-