Significant Accounting Policies (Tables)

9 Months Ended

Sep. 25, 2022

Accounting Policies [Abstract]

Schedule of net income attributable to joint ventures

Net income attributable to these joint ventures for the three and nine months ended September 25, 2022 and September 26, 2021 was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Papa John’s International, Inc.	$	314	$	2,171	$	2,642	$	6,816
Noncontrolling interests	133		1,285		1,363		4,021
Total net income	$	447	$	3,456	$	4,005	$	10,837

Schedule of details for joint venture arrangements

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 25, 2022 and December 26, 2021 are as follows:

			Fair Value Measurements
(in thousands)	Carrying Value		Level 1		Level 2		Level 3
September 25, 2022
Financial assets:
Cash surrender value of life insurance policies(a)	$	28,488	$	28,488	$	—	$	—
Interest rate swaps(b)	$	1,355	$	—	$	1,355	$	—
December 26, 2021
Financial assets:
Cash surrender value of life insurance policies(a)	$	41,904	$	41,904	$	—	$	—
Financial liabilities:
Interest rate swaps(b)	$	5,536	$	—	$	5,536	$	—

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(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”).

The Company’s 3.875% senior notes are classified as a Level 2 fair value measurement since the Company estimates the fair value by using recent trading transactions, and has the following estimated fair values and carrying values (excluding the impact of unamortized debt issuance costs) as of September 25, 2022 and December 26, 2021, respectively:

	September 25, 2022				December 26, 2021
(in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
3.875% Senior Notes	$	400,000	$	328,000	$	400,000	$	396,000

Schedule of changes of the allowance for credit losses for accounts receivable and notes receivable

The following table summarizes changes in our allowances for credit losses for accounts receivable and notes receivable:

(in thousands)	Accounts Receivable		Notes Receivable
Balance at December 26, 2021	$	2,364	$	1,500
Current period provision for expected credit losses (a)	5,052		13,524
Write-offs charged against the allowance	(303)		—
Recoveries collected	—		(14)
Balance at September 25, 2022	$	7,113	$	15,010

(a) The Company recorded $14.6 million of one-time, non-cash reserves in the first quarter of 2022 for certain accounts receivable and notes receivable primarily associated with a master franchisee with operations principally in Russia. The Company recorded $3.2 million of one-time, non-cash reserves in the third quarter of 2022 for certain accounts receivable and notes receivable primarily associated with the termination of a significant franchisee in the United Kingdom.