Significant Accounting Policies (Tables)

12 Months Ended

Dec. 25, 2011

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our financial assets and liabilities that were measured at fair value on a recurring basis as of December 25, 2011 and December 26, 2010 are as follows:

	Carrying		Fair Value Measurements
(In thousands)	Value		Level 1		Level 2		Level 3
December 25, 2011
Financial assets:
Investments	$	1,704	$	1,704	$	-	$	-
Cash surrender value of life insurance policies *		11,387		11,387		-		-
Interest rate swap		11		-		11		-
December 26, 2010
Financial assets:
Investments	$	1,604	$	1,604	$	-	$	-
Cash surrender value of life insurance policies *		12,455		12,455		-		-
Financial liabilities:
Interest rate swaps		313		-		313		-
* Represents life insurance held in our non-qualified deferred compensation plan.

Calculations of Basic Earnings per Common Share and Earnings per Common Share - Assuming Dilution

The calculations of basic earnings per common share and earnings per common share – assuming dilution for the years ended December 25, 2011, December 26, 2010 and December 27, 2009 are as follows (in thousands, except per share data):

	2011		2010		2009
Basic earnings per common share:
Net income, net of noncontrolling interests	$	55,655	$	51,940	$	57,453
Weighted average shares outstanding		25,043		26,328		27,738
Basic earnings per common share	$	2.22	$	1.97	$	2.07
Earnings per common share - assuming dilution:
Net income, net of noncontrolling interests	$	55,655	$	51,940	$	57,453
Weighted average shares outstanding		25,043		26,328		27,738
Dilutive effect of outstanding equity awards		267		140		171
Diluted weighted average shares outstanding		25,310		26,468		27,909
Earnings per common share - assuming dilution	$	2.20	$	1.96	$	2.06

Schedule of Noncontrolling Interest Arrangements

Papa John’s controlled two joint venture arrangements as of December 25, 2011, December 26, 2010 and December 27, 2009, which were as follows:

							Noncontrolling
	Restaurants as of		Restaurant	Papa John's			Interest
	December 25, 2011 *		Locations	Ownership *			Ownership *
Star Papa, LP		76	Texas		51	%		49	%
Colonel's Limited, LLC		52	Maryland and Virginia		70	%		30	%

*The ownership percentages for both joint ventures were the same for the years presented in the accompanying consolidated financial statements. There were 75 Star Papa, LP restaurants in 2010 and 2009 and 52 Colonel's Limited, LLC restaurants for all three years presented.

Schedule of Pre-Tax Income Attributable to Noncontrolling Interest

The income before income tax attributable to the joint ventures for the last three years is as follows:

	Year Ended
(In thousands)	2011		2010		2009
Papa John's International, Inc.	$	6,184	$	5,658	$	6,171
Noncontrolling interests		3,732		3,485		3,756
Total income before income tax	$	9,916	$	9,143	$	9,927