Papa Johns 2015 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2015 Papa Johns annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

31
FOCUS System
As of December 27, 2015, we have implemented FOCUS, our new, proprietary point-of-sale system in
our domestic Company-owned and franchised restaurants. FOCUS had the following impact on our
consolidated statements of income for the years ended December 27, 2015 and December 28, 2014 (in
thousands):
Dec. 27, Dec. 28,
2015 2014
Franchise royalties (a) (2,427)$ (405)$
Other sales (b) 9,885 20,143
Other operating expenses (c) (9,983) (20,629)
Depreciation and amortization (d) (5,014) (2,834)
Net decrease in income before income taxes (7,539)$ (3,725)$
Diluted earnings per common share (0.13)$ (0.06)$
Year Ended
(a) Royalty incentive program tied to franchise rollout of FOCUS.
(b) Represents revenues for equipment installed at domestic franchised restaurants.
(c) Includes cost of sales associated with equipment installed at franchised restaurants and other costs
to support the rollout of the program.
(d) Includes depreciation expense for both the capitalized software and for equipment installed at
Company-owned restaurants, which are being depreciated over five and seven years, respectively.