Papa Johns 2015 Annual Report Download - page 83

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70
7.
Acquisitions and Divestitures (continued)
The following summarizes the associated assets that are classified as held for sale (in thousands):
December 27,
2015
Inventories 667$
Prepaid expenses 672
Net property and equipment 5,571
Goodwill 1,690
Other assets 699
Total assets held for sale 9,299$
The Company-owned China operations have incurred losses before income taxes of $1.2 million in 2015,
$3.4 million in 2014, and $2.7 million in 2013. The loss in 2014 includes an impairment and disposition
charge of $1.0 million for eleven Company-owned restaurants in China. These results are reported in our
International segment.
8. Goodwill
The following summarizes changes to the Company’s goodwill, by reporting segment (in thousands):
Domestic
Company-
owned
Restaurants International (a)
All
Others Total
Balance as of December 29, 2013 58,567$ 20,388$ 436$ 79,391$
Acquisitions (b) 3,661 - - 3,661
Divestitures (c) - (47) - (47)
Foreign currency adjustments - (998) - (998)
Balance as of December 28, 2014 62,228 19,343 436 82,007
Acquisitions (d) 135 - - 135
Reclassification to assets held for sale (e) - (1,690) - (1,690)
Foreign currency adjustments - (795) - (795)
Balance as of December 27, 2015 62,363$ 16,858$ 436$ 79,657$
(a)
The international goodwill balances for all years presented are net of accumulated impairment of $2.3
million associated with our PJUK reporting unit, which was recorded in fiscal 2008.
(b)
Includes 13 restaurants located in four domestic markets.
(c)
Includes four restaurants located in the China market.
(d)
Primarily includes seven restaurants located in three domestic markets.
(e)
Represents goodwill associated with the Company-owned China market. The goodwill was
reclassified to assets held for sale as we expect to sell the business in 2016. See Note 7 for additional
information.