Noncontrolling Interests

12 Months Ended

Dec. 27, 2015

6. Noncontrolling Interests

Papa John’s has joint ventures in which there are noncontrolling interests, consisting of the following as of December 27, 2015, December 28, 2014 and December 29, 2013:

					Noncontrolling
	Number of	Restaurant	Papa John’s		Interest
	Restaurants	Locations	Ownership		Ownership

December 27, 2015
Star Papa, LP	87	Texas	51	%	49	%
Colonel’s Limited, LLC	61	Maryland and Virginia	70	%	30	%
PJ Minnesota, LLC	33	Minnesota	70	%	30	%
PJ Denver, LLC	32	Colorado	60	%	40	%

December 28, 2014
Star Papa, LP	84	Texas	51	%	49	%
Colonel’s Limited, LLC	56	Maryland and Virginia	70	%	30	%
PJ Minnesota, LLC	35	Minnesota	70	%	30	%
PJ Denver, LLC	25	Colorado	60	%	40	%

December 29, 2013
Star Papa, LP	81	Texas	51	%	49	%
Colonel’s Limited, LLC	52	Maryland and Virginia	70	%	30	%
PJ Minnesota, LLC	33	Minnesota	80	%	20	%
PJ Denver, LLC	25	Colorado	60	%	40	%

The noncontrolling interest holder’s ownership in PJ Minnesota, LLC increased from 20% to 30% in 2014 upon exercise of an option to acquire an additional 10% interest in the joint venture from the Company.

The income before income taxes attributable to these joint ventures for the years ended December 27, 2015, December 28, 2014 and December 29, 2013 were as follows (in thousands):

	2015		2014		2013

Papa John’s International, Inc.	$	9,725	$	6,932	$	5,121
Noncontrolling interests	6,282		4,382		3,442
Total income before income taxes	$	16,007	$	11,314	$	8,563

The noncontrolling interests of our Colonel’s Limited, LLC and PJ Minnesota, LLC joint ventures are recorded at carrying value in “Stockholders’ equity” in the consolidated balance sheets at both December 27, 2015 and December 28, 2014, as the noncontrolling interest holders’ agreements had no redemption features.

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