Popeye's 2015 Annual Report Download - page 48

Interest Rate Risk. Our net exposure to interest rate risk consists of our borrowings under our 2013 Credit Facility, as amended
and restated. Borrowings made pursuant to that facility include interest rates that are benchmarked to U.S. and European short-
term floating interest rates. As of December 27, 2015, the balances outstanding under our 2013 Credit Facility, totaled
$109.0 million . The impact on our annual results of operations of a hypothetical one-point interest rate change on the outstanding
balances under our 2013 Credit Facility would be approximately $0.2 million after the effects of its interest rate swap agreement.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our Consolidated Financial Statements can be found beginning on Page 44 of this Annual Report, and the relevant portions
of those statements and the accompanying notes are hereby incorporated by reference into this Item 8.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
(a) Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures of a registrant designed to ensure that information
required to be disclosed by the registrant in the reports that it files or submits under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s
rules and forms and that such information is accumulated and communicated to a registrant’s management, including its principal
executive and financial officers, as appropriate, to allow for timely decisions regarding required disclosures.
(b) Our Evaluation of the Company’s Disclosure Controls and Procedures
We evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of
December 27, 2015, as required by Rule 13a-15(b) and 15d-15(b) of the Exchange Act. This evaluation was carried out under
the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial
Officer (“CFO”).
Based on management’s assessment, the CEO and CFO concluded that the Company’s disclosure controls and procedures
were effective as of December 27, 2015 to ensure that information required to be disclosed in the reports we file or submit under
the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and
forms and accumulated and communicated to the Company’s management, including its principal executive and principal
financial officers as appropriate to allow timely decisions regarding required disclosures.
(c) Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined
in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. The Company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s
financial statements for external reporting purposes in accordance with generally accepted accounting principles.
Internal control over financial reporting has inherent limitations. Internal control over financial reporting is a process that
involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures.
Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of
such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control
over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore,
it is possible to design into the process safeguards to reduce, though not eliminate, this risk.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 27, 2015,
using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-
Integrated Framework (2013). This evaluation was carried out under the supervision and with the participation of our
management, including our CEO and CFO. Based on this assessment, management concluded that as of December 27, 2015,
the Company’s internal control over financial reporting is effective.
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