Significant Accounting Policies (Tables)

6 Months Ended

Jun. 27, 2021

Significant Accounting Policies

Schedule of net income attributable to Joint Ventures

Net income attributable to these joint ventures for the three and six months ended June 27, 2021 and June 28, 2020 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2021		2020		2021		2020
Papa John’s International, Inc.	$	2,296	$	2,320	$	4,645	$	3,451
Noncontrolling interests		1,336		1,337		2,736		1,887
Total net income	$	3,632	$	3,657	$	7,381	$	5,338

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 June 27, 2021 and December 27, 2020 are as follows (in thousands):

	Carrying		Fair Value Measurements
	Value		Level 1		Level 2		Level 3
June 27, 2021
Financial assets:
Cash surrender value of life insurance policies (a)	$	40,863	$	40,863	$	—	$	—
Financial liabilities:
Interest rate swaps (b)		9,798		—		9,798		—
December 27, 2020
Financial assets:
Cash surrender value of life insurance policies (a)	$	37,578	$	37,578	$	—	$	—
Financial liabilities:
Interest rate swaps (b)		13,452		—		13,452		—

(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
Balance at December 27, 2020	$	3,622	$	3,211
Current period credit for expected credit losses		(388)		(544)
Write-offs charged against the allowance		(1,136)		(844)
Recoveries collected		—		(268)
Balance at June 27, 2021	$	2,098	$	1,555