Significant Accounting Policies (Tables)

9 Months Ended

Sep. 24, 2017

Schedule of Income Before Income Taxes Attributable to Joint Ventures

The income before income taxes attributable to these joint ventures for the three and nine months ended September 24, 2017 and September 25, 2016 was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	September 24,		September 25,		September 24,		September 25,
	2017		2016		2017		2016

Papa John’s International, Inc.	$	1,469	$	1,879	$	6,172	$	7,168
Noncontrolling interests		852		1,183		3,767		4,623
Total income before income taxes	$	2,321	$	3,062	$	9,939	$	11,791

Schedule of Joint Ventures in Which There are Noncontrolling Interests

The following summarizes the redemption feature, location and related accounting within the condensed consolidated balance sheets for these joint venture arrangements:



Type of Joint Venture Arrangement	Location within the Balance Sheets	Recorded Value

Joint venture with no redemption feature	Permanent equity	Carrying value
Option to require the Company to purchase the noncontrolling interest - currently redeemable	Temporary equity	Redemption value*
Option to require the Company to purchase the noncontrolling interest - not currently redeemable	Temporary equity	Carrying value

*The change in redemption value is recorded as an adjustment to “Redeemable noncontrolling interests” and “Retained earnings” in the condensed consolidated balance sheets.

Schedule of 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 September 24, 2017 and December 25, 2016 are as follows (in thousands):


	Carrying		Fair Value Measurements
	Value		Level 1		Level 2		Level 3
September 24, 2017
Financial assets:
Cash surrender value of life insurance policies (a)	$	27,254	$	27,254	$	—	$	—

Financial liabilities:
Interest rate swaps (b)		2,454		—		2,454		—

December 25, 2016
Financial assets:
Cash surrender value of life insurance policies (a)	$	21,690	$	21,690	$	—	$	—

Financial liabilities:
Interest rate swaps (b)		770		—		770		—

(a)

Represents life insurance policies held in our non-qualified deferred compensation plan.

(b)

The fair value of our interest rate swaps are based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swaps, as well as considering published discount factors, and projected London Interbank Offered Rates (“LIBOR”).