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Other General Expenses (Tables)
12 Months Ended
Dec. 30, 2018
Other General Expenses  
Schedule of Other General Expenses

Other general expenses are included within General and administrative expenses and primarily consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 30,

 

 

December 31,

 

 

December 25,

 

 

2018

 

 

2017

 

 

2016

Contribution to National Marketing Fund (a)

$

10,000

 

$

 -

 

$

 -

Re-imaging costs for restaurants and write-off of brand assets (b)

 

5,841

 

 

 -

 

 

 -

Provision (credit) for uncollectible accounts and notes receivable (c)

 

3,338

 

 

(1,441)

 

 

(450)

Loss on disposition of fixed assets

 

2,233

 

 

2,493

 

 

623

Papa Rewards (d)

 

 -

 

 

1,046

 

 

442

Franchise support initiative (e)

 

34

 

 

2,986

 

 

3,185

Other

 

(1,725)

 

 

343

 

 

361

Other general expenses

 

19,721

 

 

5,427

 

 

4,161

Special Committee costs (f)

 

19,474

 

 

 -

 

 

 -

Administrative expenses

 

153,356

 

 

145,439

 

 

153,974

General and administrative expenses

$

192,551

 

$

150,866

 

$

158,135

 

(a)

Incremental contributions to National Marketing Fund to increase marketing and promotional activities during 2018.  See Note 19 for additional information.

(b)

During 2018, the Company paid for certain re-imaging costs for both Company-owned and franchise units.  See Note 19 for additional information.

(c)

Bad debt recorded on accounts receivable and notes receivable.

(d)

Online customer loyalty program costs in 2017 and 2016.  In 2018, the Company adopted Topic 606 with updated accounting guidelines for loyalty programs which are now recorded as a reduction to domestic Company-owned restaurants revenue.  See Notes 3 and 4 for additional information.

(e)

Franchise incentives include incentives to franchisees for opening new restaurants. In 2018, the Company adopted Topic 606 with updated accounting guidelines for new store equipment incentives, which are now recorded as a reduction of commissary revenues. See Notes 3 and 4 for additional information.

(f)

Costs totaling approximately $19.5 million associated with the activities of the Special Committee of the Board of Directors, including legal and advisory costs related to the review of a wide range of strategic opportunities for the Company that culminated in the recent strategic investment in the Company by affiliates of Starboard Value LP, as well as a third-party audit of the culture of Papa John’s.  See Note 19 for additional information.