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Noncontrolling Interests
 12 Months Ended
Dec. 30, 2018
Noncontrolling Interests  
Noncontrolling Interests

8.  Noncontrolling Interests

 

At December 31, 2017, Papa John’s had five joint venture arrangements in which there were noncontrolling interests held by third parties.  In the first quarter of 2018, one joint venture was divested and a second joint venture was divested in the third quarter of 2018. 

 

As of December 30, 2018, there were 183 restaurants that comprise three joint ventures as compared to 246 restaurants in five joint venture arrangements at December 31, 2017.  See Note 9 for more information on these related divestitures.

 

We are required to report the consolidated net (loss) income amounts attributable to the Company and the noncontrolling interests. Additionally, disclosures are required to clearly identify and distinguish between the interests of the Company and the interests of the noncontrolling owners, including a disclosure on the face of the Consolidated Statements of Operations of income attributable to the noncontrolling interest holders.

 

The income before income taxes attributable to these joint ventures for the years ended December 30, 2018, December 31, 2017 and December 25, 2016 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

    

2017

    

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Papa John’s International, Inc.

$

5,794

 

$

7,181

 

$

9,913

 

 

Noncontrolling interests

 

1,599

 

 

4,233

 

 

6,272

 

 

Total income before income taxes

$

7,393

 

$

11,414

 

$

16,185

 

 

 

As of December 30, 2018, the noncontrolling interest holder of one joint venture has the option to require the Company to purchase their interest, though not currently redeemable.  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.

 

The following summarizes changes in our redeemable noncontrolling interests in 2018 and 2017 (in thousands):

 

 

 

 

 

 

Balance at December 25, 2016

    

$

8,461

 

Net income

 

 

2,195

 

Distributions

 

 

(2,499)

 

Change in redemption value

 

 

(1,419)

 

Balance at December 31, 2017

    

$

6,738

 

Net loss

 

 

(274)

 

Distributions

 

 

(1,000)

 

Balance at December 30, 2018

 

$

5,464