Papa Johns 2015 Annual Report Download - page 81

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68
6. Noncontrolling Interests (continued)
The noncontrolling interest holders of two joint ventures have the option to require the Company to
purchase their interests. Since redemption of the noncontrolling interests is outside of the Company’s
control, the noncontrolling interests are presented in the caption “Redeemable noncontrolling interests” in
the consolidated balance sheets and include the following joint ventures:
•
The Star Papa, LP agreement contains a redemption feature that is not currently redeemable, but
it is probable to become redeemable in the future. Due to specific valuation provisions contained
in the agreement, this noncontrolling interest has been recorded at its carrying value.
•
The PJ Denver, LLC agreement contains a redemption feature that is currently redeemable and,
therefore, this noncontrolling interest has been recorded at its current redemption value. The
change in redemption value is recorded as an adjustment to “Redeemable noncontrolling
interests” and “Retained earnings” in the consolidated balance sheets.
The following summarizes changes in our redeemable noncontrolling interests in 2015 and 2014 (in
thousands):
Balance at December 29, 2013 7,024$
Net income 2,487
Distributions to redeemable noncontrolling interest holders (1,000)
Change in redemption value 44
Balance at December 28, 2014 8,555
Net income 3,873
Distributions to redeemable noncontrolling interest holders (4,000)
Change in redemption value (65)
Balance at December 27, 2015 8,363$