Significant Accounting Policies (Tables)

6 Months Ended

Jul. 01, 2018

Schedule of Income Before Income Taxes Attributable to Joint Ventures

The income before income taxes attributable to these joint ventures for the three and six months ended July 1, 2018 and June 25, 2017 was as follows (in thousands):



	Three Months Ended				Six Months Ended
	July 1,		June 25,		July 1,		June 25,
	2018		2017		2018		2017

Papa John’s International, Inc.	$	1,577	$	2,341	$	2,872	$	4,703
Noncontrolling interests		874		1,444		1,517		2,915
Total income before income taxes	$	2,451	$	3,785	$	4,389	$	7,618

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 venture with no redemption feature	Permanent equity	Carrying value
Option to require the Company to purchase the noncontrolling interest - not currently redeemable	Temporary equity	Carrying value

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our financial assets that were measured at fair value on a recurring basis as of July 1, 2018 and December 31, 2017 are as follows (in thousands):


	Carrying		Fair Value Measurements
	Value		Level 1		Level 2		Level 3
July 1, 2018
Financial assets:
Cash surrender value of life insurance policies (a)	$	29,771	$	29,771	$	—	$	—
Interest rate swaps (b)		10,203		—		10,203		—

December 31, 2017
Financial assets:
Cash surrender value of life insurance policies (a)	$	28,645	$	28,645	$	—	$	—
Interest rate swaps (b)		651		—		651		—

(a)

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

(b)

The fair value of our interest rate swaps are 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”).