Update to Significant Accounting Policies (Tables)

9 Months Ended

Sep. 27, 2020

Update to Significant Accounting Policies

Schedule of net income attributable to Joint Ventures

Net income (loss) attributable to these joint ventures for the three and nine months ended September 27, 2020 and September 29, 2019 was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 27,		September 29,		September 27,		September 29,
	2020		2019		2020		2019
Papa John’s International, Inc.	$	1,292	$	213	$	4,743	$	1,385
Noncontrolling interests		689		(128)		2,576		327
Total net income	$	1,981	$	85	$	7,319	$	1,712

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 ventures with no redemption feature	Permanent equity	Carrying value
Joint ventures with option to require the Company to purchase the noncontrolling interest - not currently redeemable or redemption not probable	Temporary equity	Carrying value

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 27, 2020 and December 29, 2019 are as follows (in thousands):

	Carrying		Fair Value Measurements
	Value		Level 1		Level 2		Level 3
September 27, 2020
Financial assets:
Cash surrender value of life insurance policies (a)	$	33,953	$	33,953	$	—	$	—
Financial liabilities:
Interest rate swaps (b)		15,334		—		15,334		—
December 29, 2019
Financial assets:
Cash surrender value of life insurance policies (a)	$	33,220	$	33,220	$	—	$	—
Financial liabilities:
Interest rate swaps (b)		6,168		—		6,168		—

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

(b) The fair value of our interest rate swaps is 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”).

Schedule rollforward of the allowance for credit losses for accounts receivable, notes receivable and other assets

(in thousands)	Accounts Receivable		Notes Receivable		Interest Receivable
Balance at December 29, 2019	$	7,341	$	3,572	$	910
Cumulative effect of adoption of ASU 2016-13		912		463		-
Balance at December 30, 2019		8,253		4,035		910
Current period (credit) provision for expected credit losses		(234)		(244)		144
Write-offs charged against the allowance		(598)		(10)		-
Recoveries collected		-		(100)		-
Transfers		-		1,054		(1,054)
Balance at September 27, 2020	$	7,421	$	4,735	$	-