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Update to Significant Accounting Policies (Tables)
9 Months Ended
Sep. 29, 2019
Update to Significant Accounting Policies  
Schedule of Income Before Income Taxes Attributable to Joint Ventures

The income before income taxes attributable to these joint ventures for the three and nine months ended September 29, 2019 and September 30, 2018 was as follows (in thousands):

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Three Months Ended

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Nine Months Ended

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September 29,

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September 30,

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September 29,

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September 30,

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2019

    

2018

    

2019

    

2018

 

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Papa John’s International, Inc.

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$

213

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$

1,512

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$

1,385

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$

4,384

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Noncontrolling interests

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(128)

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439

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327

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1,956

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Total income before income taxes

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$

85

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$

1,951

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$

1,712

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$

6,340

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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:

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Type of Joint Venture Arrangement

    

Location within the Balance Sheets

    

Recorded Value

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Joint venture 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

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Our financial assets and liabilities that were measured at fair value on a recurring basis as of September 29, 2019 and December 30, 2018 are as follows (in thousands):

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Carrying

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Fair Value Measurements

 

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Value

    

Level 1

    

Level 2

    

Level 3

 

September 29, 2019

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Financial assets:

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Cash surrender value of life insurance policies (a)

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$

31,361

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$

31,361

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$

—

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$

—

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Financial liabilities:

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Interest rate swaps (b)

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7,950

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—

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7,950

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—

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December 30, 2018

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Financial assets:

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Cash surrender value of life insurance policies (a)

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$

27,751

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$

27,751

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$

—

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$

—

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Interest rate swaps (b)

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4,905

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—

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4,905

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—

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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”).

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