Papa Johns 2014 Annual Report Download - page 91

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78
16. Related Party Transactions
Certain of our officers and directors own equity interests in entities that franchise restaurants. Following
is a summary of full-year transactions and year-end balances with franchisees owned by related parties
and PJMF (in thousands):
2014 2013 2012
The revenues from affiliates were at rates and terms available to independent franchisees. Additionally,
the table excludes transactions and balances in 2013 for a former non-management director.
We paid $770,000 in 2014, $1.1 million in 2013 and $1.1 million in 2012 for charter aircraft services
provided by an entity owned by our Founder, Chairman, President and Chief Executive Officer.
On November 12, 2013, we repurchased $38.6 million of our common stock (1.0 million shares at the
closing price of $38.61 per share) from our Founder, Chairman, President and Chief Executive Officer.
We had the following transactions with PJMF:
PJMF reimbursed Papa John’s $634,000, $2.2 million and $3.0 million in 2014, 2013, and 2012,
respectively, for certain costs associated with national pizza giveaways awarded to our online
loyalty program customers.
PJMF reimbursed Papa John’s $1.2 million, $782,000, and $917,000 in 2014, 2013, and 2012,
respectively, for certain administrative services (i.e., marketing, accounting, and information
services), graphic design services, services and expenses of our founder as brand spokesman, and
for software maintenance fees.
17. Litigation, Commitments and Contingencies
Litigation
The Company is involved in a number of lawsuits, claims, investigations and proceedings, including
those specifically identified below, consisting of intellectual property, employment, consumer,
commercial and other matters arising in the ordinary course of business. In accordance with ASC 450
“Contingencies,” the Company has made accruals with respect to these matters, where appropriate, which
are reflected in the Company’s financial statements. We review these provisions at least quarterly and
adjust these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel
and other information and events pertaining to a particular case.