Papa John's International (PZZA) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2018	Jul. 31, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 1, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	PZZA
Entity Registrant Name	PAPA JOHNS INTERNATIONAL INC
Entity Central Index Key	901,491
Current Fiscal Year End Date	--12-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		31,619,630

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017	Jun. 25, 2017	Dec. 25, 2016
Current assets:
Cash and cash equivalents	$ 25,719	$ 26,624	$ 22,345	$ 22,247	$ 15,563
Accounts receivable, net	62,973	65,137	64,644
Notes receivable, net	5,180	4,333	4,333
Income tax receivable		3,903	3,903
Inventories	27,109	30,620	30,620
Prepaid expenses	26,729	23,563	28,522
Other current assets	7,223	9,494	9,494
Assets held for sale	2,786	6,133	6,133
Total current assets	157,719	169,807	169,994
Property and equipment, net	227,722	234,331	234,331
Notes receivable, less current portion, net	15,648	15,568	15,568
Goodwill	85,064	86,892	86,892
Deferred income taxes, net	709	585	585
Other assets	71,309	47,276	48,183
Total assets	558,171	554,459	555,553
Current liabilities:
Accounts payable	33,307	29,845	32,006
Income and other taxes payable	8,904	10,561	10,561
Accrued expenses and other current liabilities	81,197	86,153	70,293
Deferred revenue current	2,426	2,400
Current portion of long-term debt	20,000	20,000	20,000
Total current liabilities	145,834	148,959	132,860
Deferred revenue	15,329	13,450	2,652
Long-term debt, less current portion, net	556,387	446,565	446,565
Deferred income taxes, net	5,140	6,082	12,546
Other long-term liabilities	78,515	60,146	60,146
Total liabilities	801,205	675,202	654,769
Redeemable noncontrolling interests	7,356	6,738	6,738
Stockholders’ (deficit):
Preferred stock ($0.01 par value per share; no shares issued)
Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018 and 44,221 at December 31, 2017)	443	442	442
Additional paid-in capital	188,026	184,785	184,785
Accumulated other comprehensive income (loss)	2,240	(2,117)	(2,117)
Retained earnings	285,460	270,724	292,251
Treasury stock (12,733 shares at July 1, 2018 and 10,290 shares at December 31, 2017, at cost)	(742,695)	(597,072)	(597,072)
Total stockholders’ (deficit), net of noncontrolling interests	(266,526)	(143,238)	(121,711)
Noncontrolling interests in subsidiaries	16,136	15,757	15,757
Total stockholders’ (deficit)	(250,390)	(127,481)	(105,954)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	$ 558,171	$ 554,459	$ 555,553

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jul. 01, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	44,280	44,221
Treasury stock, shares	12,733	10,290

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Revenues:
Total revenues	$ 407,959	$ 434,778	$ 835,328	$ 884,044
Costs and expenses:
General and administrative expenses	38,712	40,248	78,441	76,662
Depreciation and amortization	11,731	10,654	23,270	21,111
Total costs and expenses	380,470	397,561	780,726	803,146
Refranchising loss, net	(2,122)		(1,918)
Operating income	25,367	37,217	52,684	80,898
Net Interest expense	(5,662)	(1,759)	(10,617)	(3,569)
Income before income taxes	19,705	35,458	42,067	77,329
Income tax expense	7,040	10,476	12,022	22,448
Net income before attribution to noncontrolling interests	12,665	24,982	30,045	54,881
Income attributable to noncontrolling interests	(874)	(1,444)	(1,517)	(2,915)
Net income attributable to the Company	11,791	23,538	28,528	51,966
Calculation of income for earnings per share:
Net income attributable to the Company	11,791	23,538	28,528	51,966
Change in noncontrolling interest redemption value		662		1,182
Net income attributable to participating securities	(72)	(99)	(147)	(216)
Net income attributable to common shareholders	$ 11,719	$ 24,101	$ 28,381	$ 52,932
Basic earnings per common share	$ 0.37	$ 0.66	$ 0.87	$ 1.44
Diluted earnings per common share	$ 0.36	$ 0.65	$ 0.86	$ 1.42
Basic weighted average common shares outstanding	31,941	36,732	32,610	36,771
Diluted weighted average common shares outstanding	32,175	37,217	32,860	37,283
Dividends declared per common share	$ 0.225	$ 0.200	$ 0.450	$ 0.400
Domestic Company-owned restaurants
Revenues:
Total revenues	$ 181,379	$ 202,756	$ 371,621	$ 409,652
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	147,781	162,433	305,100	327,852
North America franchising
Revenues:
Total revenues	23,912	26,588	48,718	54,195
North America commissary
Revenues:
Total revenues	153,455	160,059	315,168	331,399
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	143,300	149,472	294,981	309,429
International
Revenues:
Total revenues	29,069	27,245	59,183	52,867
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	18,248	17,272	37,278	33,063
Other segment
Revenues:
Total revenues	20,144	18,130	40,638	35,931
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	$ 20,698	$ 17,482	$ 41,656	$ 35,029

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income before attribution to noncontrolling interests	$ 12,665	$ 24,982	$ 30,045	$ 54,881
Other comprehensive (loss) income, before tax:
Foreign currency translation adjustments	(5,295)	808	(3,312)	1,421
Interest rate swaps	2,834	(1,857)	9,552	(2,325)
Other comprehensive (loss) income, before tax	(2,461)	(1,049)	6,240	(904)
Income tax effect:
Foreign currency translation adjustments	1,218	(299)	745	(526)
Interest rate swaps	(627)	687	(2,172)	860
Income tax effect	591	388	(1,427)	334
Other comprehensive (loss) income, net of tax	(1,870)	(661)	4,813	(570)
Comprehensive income before attribution to noncontrolling interests	10,795	24,321	34,858	54,311
Less: comprehensive income, redeemable noncontrolling interests	(319)	(745)	(404)	(1,539)
Less: comprehensive income, nonredeemable noncontrolling interests	(555)	(699)	(1,113)	(1,376)
Comprehensive income attributable to the Company	$ 9,921	$ 22,877	$ 33,341	$ 51,396

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) $ in Thousands	Jun. 15, 2018USD ($)restaurant	Jul. 01, 2018USD ($)	Apr. 01, 2018USD ($)	Jun. 25, 2017USD ($)	Jul. 01, 2018USD ($)	Jun. 25, 2017USD ($)
Consolidated Statements of Comprehensive Income (Unaudited)
Net Interest expense		$ 5,662		$ 1,759	$ 10,617	$ 3,569
Income tax effects		7,040		10,476	12,022	22,448
Stores in Beijing and Tianjin, China
Consolidated Statements of Comprehensive Income (Unaudited)
Number of restaurants divested | restaurant	34
Reversal of accumulated other comprehensive income related to foreign currency translation	$ 1,300
Reversal of deferred tax related to foreign currency translation on refranchised stores	$ 300
Amount reclassified from AOCL | ASU 2018-02
Consolidated Statements of Comprehensive Income (Unaudited)
Income tax effects			$ 450
Qualifying as hedges | Interest rate swap | Amount reclassified from AOCL
Consolidated Statements of Comprehensive Income (Unaudited)
Net Interest expense		89		126	197	324
Income tax effects		$ 20		$ 47	$ 45	$ 120

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017
Operating activities
Net income before attribution to noncontrolling interests	$ 30,045	$ 54,881
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for uncollectible accounts and notes receivable	3,591	(1,091)
Depreciation and amortization	23,270	21,111
Deferred income taxes	(2,511)	158
Stock-based compensation expense	4,929	5,571
Loss on refranchising	1,918
Other	3,032	1,978
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(148)	(355)
Income tax receivable	3,678	(45)
Inventories	3,188	550
Prepaid expenses	1,159	2,966
Other current assets	5,524	(372)
Other assets and liabilities	(2,202)	(1,559)
Accounts payable	2,511	(3,950)
Income and other taxes payable	(1,656)	1,275
Accrued expenses and other current liabilities	(2,506)	(3,002)
Deferred revenue	379	(253)
Net cash provided by operating activities	74,201	77,863
Investing activities
Purchases of property and equipment	(21,562)	(30,457)
Loans issued	(1,904)	(1,476)
Repayments of loans issued	2,720	2,125
Acquisitions, net of cash acquired		(21)
Proceeds from divestitures of restaurants	3,690
Other	146	25
Net cash used in investing activities	(16,910)	(29,804)
Financing activities
Repayments of term loan	(10,000)
Net proceeds (repayments) of revolving credit facility	119,400	5,156
Cash dividends paid	(14,762)	(14,703)
Tax payments for equity award issuances	(1,353)	(2,282)
Proceeds from exercise of stock options	2,179	5,218
Acquisition of Company common stock	(148,440)	(33,968)
Distributions to noncontrolling interest holders	(1,110)	(1,389)
Other	231	494
Net cash used in financing activities	(53,855)	(41,474)
Effect of exchange rate changes on cash and cash equivalents	(62)	99
Change in cash and cash equivalents	3,374	6,684
Cash and cash equivalents at beginning of period	22,345	15,563
Cash and cash equivalents at end of period	$ 25,719	$ 22,247

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 01, 2018
Basis of Presentation
Basis of Presentation	1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the three and six months ended July 1, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2018. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for Papa John’s International, Inc. (referred to as the “Company”, “Papa John’s” or in the first-person notations of “we”, “us” and “our”) for the year ended December 31, 2017.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jul. 01, 2018
Significant Accounting Policies
Significant Accounting Policies	2. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items that are subject to such estimates and assumptions include allowance for doubtful accounts and notes receivable, intangible assets, online customer loyalty program obligation, insurance reserves and tax reserves. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates. Noncontrolling Interests At the beginning of 2018, Papa John’s had five joint venture arrangements in which there were noncontrolling interests held by third parties. In the first quarter of 2018, one joint venture was divested and an additional joint venture was divested subsequent to the end of the second quarter. That joint venture was classified as held for sale as of July 1, 2018. As of July 1, 2018, there were 215 restaurants that comprise these joint ventures, including our held for sale joint venture as compared to 223 restaurants at June 25, 2017. As of the beginning of the third quarter of 2018, there were 184 restaurants under these joint venture arrangements. See Note 7 for more information on these related divestitures. We are required to report the consolidated net income at amounts attributable to the Company and the noncontrolling interests. Additionally, disclosures are required to clearly identify and distinguish between the interests of the Company and the interests of the noncontrolling owners, including a disclosure on the face of the Condensed Consolidated Statements of Income attributable to the noncontrolling interest holders. 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 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 Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Delivery costs, including freight associated with our domestic commissary and other sales are accounted for as fulfillment costs and are included in operating costs. As further described in Accounting Standards Adopted and Note 3, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”), in the first quarter of 2018. Prior year revenue recognition follows ASC Topic 605, Revenue Recognition. The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Company-owned Restaurant Sales The domestic and international Company-owned restaurants principally generate revenue from retail sales of high-quality pizza, side items including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. Revenues from Company-owned restaurants are recognized when the products are delivered to or carried out by customers. Our domestic customer loyalty program, Papa Rewards, is a spend-based program that rewards customers with points for each online purchase. Papa Rewards points are accumulated and redeemed online for free products. The accrued liability in the Condensed Consolidated Balance Sheets, and corresponding reduction of Company-owned restaurant sales in the Condensed Consolidated Statements of Income is for the estimated reward redemptions at domestic Company-owned restaurants based upon historical redemption patterns. Currently, the liability related to Papa Rewards is calculated using the estimated selling price of the products for which rewards are expected to be redeemed. Revenue is recognized when the customer redeems points for products. Prior to the adoption of Topic 606, the liability related to Papa Rewards was estimated using the incremental cost accrual model which was based on the expected cost to satisfy the award and the corresponding expense was recorded in general and administrative expenses in the Condensed Consolidated Statements of Income. Commissary Sales Commissary sales are comprised of food and supplies sold to franchised restaurants and are recognized as revenue upon shipment or delivery of the related products to the franchisees. Payments are generally due within 30 days. Franchise Royalties and Fees Franchise royalties which are based on a percentage of franchise restaurant sales are recognized as sales occur. Royalty reductions, offered as part of a new store development incentive or as incentive for other behaviors including acceleration of restaurant remodels or equipment upgrades, are recognized at the same time as the related royalty as they are not separately distinguishable from the full royalty rate. Franchise royalties are billed on a monthly basis. The majority of initial franchise license fees and area development exclusivity fees are from international locations. Initial franchise license fees are billed at the store opening date. Area development exclusivity fees are billed upon execution of the development agreements which grant the right to develop franchised restaurants in future periods in specific geographic areas. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Franchise license renewal fees for both domestic and international locations, which generally occur every 10 years, are billed before the renewal date. The pre-opening services provided to franchisees do not contain separate and distinct performance obligations from the franchise right; thus, the fees collected will be amortized on a straight-line basis beginning at the store opening date through the term of the franchise agreement, which is typically 10 years. Fees received for future license renewal periods are amortized over the life of the renewal period. For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for license renewal fees. The Company offers various incentive programs for franchisees including royalty incentives, new restaurant opening incentives (i.e. development incentives) and other support initiatives. Royalties, franchise fees and commissary sales are reduced to reflect any incentives earned or granted under these programs that are in the form of discounts. Other development incentives for opening restaurants are offered in the form of Company equipment through a lease agreement at substantially no cost to the franchisee. This equipment is amortized by us over the term of the lease agreement, which is generally three to five years, and is recognized in general and administrative expenses in our Condensed Consolidated Statements of Income. The equipment lease agreement has separate and distinguishable obligations from the franchise right and is accounted for under ASC Topic 840, Leases. Other Revenues Fees for information services, including software maintenance fees, help desk fees and online ordering fees are recognized as revenue as such services are provided and are included in other revenue. Revenues for printing, promotional items, and direct mail marketing services are recognized upon shipment of the related products to franchisees and other customers. Direct mail advertising discounts are also periodically offered by our Preferred Marketing Solutions subsidiary. Other revenues are reduced to reflect these advertising discounts. Rental income, primarily derived from properties leased by the Company and subleased to franchisees in the United Kingdom, is recognized on a straight-line basis over the respective operating lease terms, in accordance with ASC Topic 840, Leases. Franchise Marketing Fund revenues represent contributions collected by various international and domestic marketing funds (“Co-op” or “Co-operative”) where we have determined that we have control over the activities of the fund. Contributions are based on a percentage of monthly restaurant sales. The adoption of Topic 606 revised the principal versus agent determination of these arrangements. When we are determined to be the principal in these arrangements, advertising fund contributions and expenditures are reported on a gross basis in the Condensed Consolidated Statements of Income. Our obligation related to these funds is to develop and conduct advertising activities in a specific country, region, or market, including the placement of electronic and print materials. Marketing fund contributions are billed monthly. For periods prior to the adoption of Topic 606, the revenues and expenses of certain international advertising funds and the Co-op Funds in which we possess majority voting rights, were included in our Condensed Consolidated Statements of Income on a net basis as we previously concluded we were the agent in regard to the funds based upon principal/agent determinations in industry-specific guidance in GAAP that was in effect during those time periods. Deferred Income Tax Accounts and Tax Reserves We are subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining Papa John’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable and those deferred. We use an estimated annual effective rate based on expected annual income to determine our quarterly provision for income taxes. Discrete items are recorded in the quarter in which they occur. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax attribute carryforwards (e.g., net operating losses, capital losses, and foreign tax credits). The effect on deferred taxes of changes in tax rates is recognized in the period in which the new tax rate is enacted. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts we expect to realize. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, significantly decreasing the U.S. federal income tax rate for corporations effective January 1, 2018. As a result, we remeasured our deferred tax assets, liabilities and related valuation allowances in 2017. This remeasurement yielded a one-time benefit of approximately $7.0 million due to the lower income tax rate in 2017. Given the substantial changes associated with the Tax Act, the estimated financial impacts for 2017 are provisional and subject to further interpretation and clarification of the Tax Act during 2018. As of July 1, 2018, the Company has not made any material adjustments to the December 30, 2017 estimates. Our net deferred income tax liability was approximately $4.4 million at July 1, 2018. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), that allows for an entity to reclassify disproportionate income tax effects in accumulated other comprehensive income (loss) (“AOCI”) caused by the Tax Act to retained earnings. See “Accounting Standards Adopted” section below for additional details. Tax authorities periodically audit the Company. We record reserves and related interest and penalties for identified exposures as income tax expense. We evaluate these issues on a quarterly basis to adjust for events, such as statute of limitations expirations, court or state rulings or audit settlements, which may impact our ultimate payment for such exposures. Fair Value Measurements and Disclosures The Company is required to determine the fair value of financial assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. Fair value is a market-based measurement, not an entity specific measurement. The fair value of certain assets and liabilities approximates carrying value because of the short-term nature of the accounts, including cash and cash equivalents, accounts receivable and accounts payable. The carrying value of our notes receivable, net of allowances, also approximates fair value. The fair value of the amount outstanding under our term debt and revolving credit facility approximates its carrying value due to its variable market-based interest rate (Level 2). Certain assets and liabilities are measured at fair value on a recurring basis and are required to be classified and disclosed in one of the following categories: · Level 1: Quoted market prices in active markets for identical assets or liabilities. · Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. · Level 3: Unobservable inputs that are not corroborated by market data. 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”). Our assets and liabilities that were measured at fair value on a non-recurring basis as of December 31, 2017 include assets and liabilities held for sale. The fair value was determined using a market-based approach with unobservable inputs (Level 3) less any estimated selling costs. There were no transfers among levels within the fair value hierarchy during the six months ended July 1, 2018. Variable Interest Entity Papa John’s domestic restaurants, both Company-owned and franchised, participate in Papa John’s Marketing Fund, Inc. (“PJMF”), a nonstock corporation designed to operate at break-even for the purpose of designing and administering advertising and promotional programs for all participating domestic restaurants. PJMF is a variable interest entity as it does not have sufficient equity to fund its operations without ongoing financial support and contributions from its members. Based on the ownership and governance structure and operating procedures of PJMF, we have determined that we do not have the power to direct the most significant activities of PJMF and therefore are not the primary beneficiary. Accordingly, consolidation of PJMF is not appropriate. Accounting Standards Adopted Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single revenue recognition framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract. The Company adopted Topic 606 as of January 1, 2018. See Note 3 for additional information. Certain Tax effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, which allows for an entity to reclassify disproportionate income tax in AOCI caused by the Tax Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company adopted ASU 2018-02 in the first quarter of 2018 by electing to reclassify the income tax effects from AOCI to retained earnings. The impact of the adoption was not material to our condensed consolidated financial statements. Accounting Standards to be Adopted in Future Periods Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”), which amends leasing guidance by requiring companies to recognize a right-of-use asset and a lease liability for all operating and capital leases (financing) with lease terms greater than twelve months. The lease liability will be equal to the present value of lease payments. The lease asset will be based on the lease liability, subject to adjustment, such as for initial direct costs. For income statement purposes, leases will continue to be classified as operating or capital (financing) with lease expense in both cases calculated substantially the same as under the prior leasing guidance. In July 2018, the FASB issued the following amendments to clarify the implementation guidance: ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements.” The amendment allows for a modified retrospective adoption approach and new required lease disclosures for all leases existing or entered into after either the beginning of the year of adoption or the earliest comparative period in the consolidated financial statements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company has not yet determined the full impact of the adoption on its consolidated financial statements but expects the adoption will result in a significant increase in the non-current assets and liabilities reported on our Consolidated Balance Sheet. Goodwill In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other,” (“ASU 2017-04”), which simplifies the accounting for goodwill. ASU 2017-04 eliminates the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. The goodwill impairment is the difference between the carrying value and fair value, not to exceed the carrying amount. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. The Company is currently evaluating this standard and its potential impact on our consolidated financial statements. Reclassification Certain prior year amounts have been reclassified in the Condensed Consolidated Statements of Income. See Note 11 for additional information.

Adoption of ASU 2014-09, "Reven

Adoption of ASU 2014-09, "Revenue from Contracts with Customers"	6 Months Ended
	Jul. 01, 2018
Adoption of ASU 2014-09, "Revenue from Contracts with Customers"
Adoption of ASU 2014-09, "Revenue from Contracts with Customers"	3. Adoption of ASU 2014-09, “Revenue from Contracts with Customers” The Company adopted Topic 606 using the modified retrospective transition method effective January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented in accordance with Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605, Revenue Recognition. The cumulative effect adjustment of $21.5 million was recorded as a reduction to retained earnings as of January 1, 2018 to reflect the impact of adopting Topic 606. The impact of applying Topic 606 for the three and six months ended July 1, 2018, was an increase in revenues of $1.8 million and $4.3 million respectively and a decrease in pre-tax income of $1.4 million and $1.9 million, respectively. The adoption of Topic 606 did not impact the recognition and reporting of our three largest sources of revenue: sales from Company-owned restaurants, commissary sales, or continuing royalties or other revenues from franchisees that are based on a percentage of the franchise sales. The items impacted by the adoption include the presentation and amount of our loyalty program costs, the timing of franchise and development fees revenue recognition, and the presentation of various domestic and international advertising funds as further described below. Cumulative adjustment from adoption As noted above, an after-tax reduction of $21.5 million was recorded to retained earnings in the first quarter of 2018 to reflect the cumulative impact of adopting Topic 606. This is comprised of $10.8 million related to franchise fees, $8.0 million related to the customer loyalty program and $2.7 million related to marketing funds. The following chart presents the specific line items impacted by the cumulative adjustment. Adjusted As Reported Balance Sheet December 31, Total at January 1, (In thousands, except per share amounts) 2017 Adjustments 2018 Assets Current assets: Cash and cash equivalents $ 22,345 $ 4,279 $ 26,624 Accounts receivable, net 64,644 493 65,137 Notes receivable, net 4,333 — 4,333 Income tax receivable 3,903 — 3,903 Inventories 30,620 — 30,620 Prepaid expenses 28,522 (4,959) 23,563 Other current assets 9,494 — 9,494 Assets held for sale 6,133 — 6,133 Total current assets 169,994 (187) 169,807 Property and equipment, net 234,331 — 234,331 Notes receivable, less current portion, net 15,568 — 15,568 Goodwill 86,892 — 86,892 Deferred income taxes, net 585 — 585 Other assets 48,183 (907) 47,276 Total assets $ 555,553 $ (1,094) $ 554,459 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $ 32,006 $ (2,161) $ 29,845 Income and other taxes payable 10,561 — 10,561 Accrued expenses and other current liabilities 70,293 15,860 86,153 Deferred revenue current — 2,400 2,400 Current portion of long-term debt 20,000 — 20,000 Total current liabilities 132,860 16,099 148,959 Deferred revenue 2,652 10,798 13,450 Long-term debt, less current portion, net 446,565 — 446,565 Deferred income taxes, net 12,546 (6,464) 6,082 Other long-term liabilities 60,146 — 60,146 Total liabilities 654,769 20,433 675,202 Redeemable noncontrolling interests 6,738 — 6,738 Stockholders’ equity (deficit): Preferred stock ($0.01 par value per share; no shares issued) — — — Common stock ($0.01 par value per share; issued 44,221 at December 31, 2017 442 — 442 Additional paid-in capital 184,785 — 184,785 Accumulated other comprehensive loss (2,117) — (2,117) Retained earnings 292,251 (21,527) 270,724 Treasury stock (10,290 shares at December 31, 2017, at cost) (597,072) — (597,072) Total stockholders’ (deficit), net of noncontrolling interests (121,711) (21,527) (143,238) Noncontrolling interests in subsidiaries 15,757 — 15,757 Total stockholders’ (deficit) (105,954) (21,527) (127,481) Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit) $ 555,553 $ (1,094) $ 554,459 The impact of adoption for the second quarter of 2018 is as follows: As Reported Balance Sheet July 1, Total Without Adoption (In thousands, except per share amounts) 2018 Adjustments of Topic 606 Assets Current assets: Cash and cash equivalents $ 25,719 $ (3,130) $ 22,589 Accounts receivable, net 62,973 (359) 62,614 Notes receivable, net 5,180 — 5,180 Income tax receivable — — — Inventories 27,109 — 27,109 Prepaid expenses 26,729 4,827 31,556 Other current assets 7,223 — 7,223 Assets held for sale 2,786 — 2,786 Total current assets 157,719 1,338 159,057 Property and equipment, net 227,722 — 227,722 Notes receivable, less current portion, net 15,648 — 15,648 Goodwill 85,064 — 85,064 Deferred income taxes, net 709 — 709 Other assets 71,309 907 72,216 Total assets $ 558,171 $ 2,245 $ 560,416 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $ 33,307 $ 1,493 $ 34,800 Income and other taxes payable 8,904 — 8,904 Accrued expenses and other current liabilities 81,197 (15,457) 65,740 Deferred revenue current 2,426 (2,426) — Current portion of long-term debt 20,000 — 20,000 Total current liabilities 145,834 (16,390) 129,444 Deferred revenue 15,329 (11,157) 4,172 Long-term debt, less current portion, net 556,387 — 556,387 Deferred income taxes, net 5,140 6,682 11,822 Other long-term liabilities 78,515 — 78,515 Total liabilities 801,205 (20,865) 780,340 Redeemable noncontrolling interests 7,356 — 7,356 Stockholders’ equity (deficit): Preferred stock ($0.01 par value per share; no shares issued) — — — Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018) 443 — 443 Additional paid-in capital 188,026 — 188,026 Accumulated other comprehensive income (loss) 2,240 — 2,240 Retained earnings 285,460 23,091 308,551 Treasury stock (12,733 shares at July 1, 2018, at cost) (742,695) — (742,695) Total stockholders’ (deficit), net of noncontrolling interests (266,526) 23,091 (243,435) Noncontrolling interests in subsidiaries 16,136 19 16,155 Total stockholders’ (deficit) (250,390) 23,110 (227,280) Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit) $ 558,171 $ 2,245 $ 560,416 As Reported Three Months Ended Income Statement July 1, Total Without Adoption of (In thousands, except per share amounts) 2018 Adjustments Topic 606 Revenues: Domestic Company-owned restaurant sales $ 181,379 $ 812 $ 182,191 North America franchise royalties and fees 23,912 82 23,994 North America commissary 153,455 — 153,455 International 29,069 175 29,244 Other revenues 20,144 (2,883) 17,261 Total revenues 407,959 (1,814) 406,145 Costs and expenses: Operating costs (excluding depreciation and amortization shown separately below): Domestic Company-owned restaurant expenses 147,781 (272) 147,509 North America commissary 143,300 — 143,300 International expenses 18,248 — 18,248 Other expenses 20,698 (2,951) 17,747 General and administrative expenses 38,712 34 38,746 Depreciation and amortization 11,731 — 11,731 Total costs and expenses 380,470 (3,189) 377,281 Refranchising loss, net (2,122) — (2,122) Operating income 25,367 1,375 26,742 Net Interest expense (5,662) — (5,662) Income before income taxes 19,705 1,375 21,080 Income tax expense 7,040 306 7,346 Net income before attribution to noncontrolling interests 12,665 1,069 13,734 Income attributable to noncontrolling interests (874) — (874) Net income attributable to the Company $ 11,791 $ 1,069 $ 12,860 Calculation of income for earnings per share: Net income attributable to the Company $ 11,791 $ 1,069 $ 12,860 Net income attributable to participating securities (72) — (72) Net income attributable to common shareholders $ 11,719 $ 1,069 $ 12,788 Basic earnings per common share $ 0.37 $ 0.03 $ 0.40 Diluted earnings per common share $ 0.36 $ 0.03 $ 0.40 Basic weighted average common shares outstanding 31,941 31,941 31,941 Diluted weighted average common shares outstanding 32,175 32,175 32,175 As Reported Six Months Ended Income Statement July 1, Total Without Adoption of (In thousands, except per share amounts) 2018 Adjustments Topic 606 Revenues: Domestic Company-owned restaurant sales $ 371,621 $ 1,076 $ 372,697 North America franchise royalties and fees 48,718 120 48,838 North America commissary 315,168 — 315,168 International 59,183 324 59,507 Other revenues 40,638 (5,770) 34,868 Total revenues 835,328 (4,250) 831,078 Costs and expenses: Operating costs (excluding depreciation and amortization shown separately below): Domestic Company-owned restaurant expenses 305,100 (338) 304,762 North America commissary 294,981 — 294,981 International expenses 37,278 — 37,278 Other expenses 41,656 (6,310) 35,346 General and administrative expenses 78,441 538 78,979 Depreciation and amortization 23,270 — 23,270 Total costs and expenses 780,726 (6,110) 774,616 Refranchising loss, net (1,918) — (1,918) Operating income 52,684 1,860 54,544 Net Interest expense (10,617) — (10,617) Income before income taxes 42,067 1,860 43,927 Income tax expense 12,022 418 12,440 Net income before attribution to noncontrolling interests 30,045 1,442 31,487 Income attributable to noncontrolling interests (1,517) — (1,517) Net income attributable to the Company $ 28,528 $ 1,442 $ 29,970 Calculation of income for earnings per share: Net income attributable to the Company $ 28,528 $ 1,442 $ 29,970 Net income attributable to participating securities (147) — (147) Net income attributable to common shareholders $ 28,381 $ 1,442 $ 29,823 Basic earnings per common share $ 0.87 $ 0.04 $ 0.91 Diluted earnings per common share $ 0.86 $ 0.04 $ 0.91 Basic weighted average common shares outstanding 32,610 32,610 32,610 Diluted weighted average common shares outstanding 32,860 32,860 32,860 Transaction Price Allocated to the Remaining Performance Obligations The following table (in thousands) includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. Performance Obligations by Period Less than 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Thereafter Total Franchise Fees $ 2,426 $ 2,179 $ 1,948 $ 1,732 $ 1,503 $ 3,795 $ 13,583 An additional $4.2 million of area development fees related to unopened stores and unearned royalties are included in deferred revenue. Timing of revenue recognition is dependent upon the timing of store openings and franchisee’s revenues. As of July 1, 2018, the amount allocated to the Papa Rewards loyalty program is $15.8 million and is reflected in the Condensed Consolidated Balance Sheet as part of the contract liability included in accrued expenses and other current liabilities. This will be recognized as revenue as the points are redeemed, which is expected to occur within the next year. The Company applies the practical expedient in ASU paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jul. 01, 2018
Revenue Recognition
Revenue Recognition	4. Revenue Recognition Disaggregation of Revenue In the following table (in thousands), revenue is disaggregated by major product line. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Reportable Segments Three Months Ended July 1, 2018 Major Products/Services Lines Domestic Company-owned restaurants North America commissaries North America franchising International All others Total Company-owned restaurant sales $ 181,379 $ - $ - $ 2,783 $ - $ 184,162 Commissary sales - 204,947 - 17,299 - 222,246 Franchise royalties and fees - - 24,928 8,987 - 33,915 Other revenues - - - 5,656 22,139 27,795 Eliminations - (51,492) (1,016) (73) (7,578) (60,159) Total $ 181,379 $ 153,455 $ 23,912 $ 34,652 $ 14,561 $ 407,959 Reportable Segments Six Months Ended July 1, 2018 Major Products/Services Lines Domestic Company-owned restaurants North America commissaries North America franchising International All others Total Company-owned restaurant sales $ 371,621 $ - $ - $ 6,237 $ - $ 377,858 Commissary sales - 422,534 - 34,978 - 457,512 Franchise royalties and fees - - 50,753 17,969 - 68,722 Other revenues - - - 11,143 45,289 56,432 Eliminations - (107,366) (2,035) (143) (15,652) (125,196) Total $ 371,621 $ 315,168 $ 48,718 $ 70,184 $ 29,637 $ 835,328 The revenue summarized above is described in Note 2 under the heading “Significant Accounting Policies – Revenue Recognition.” Contract Balances The contract liabilities primarily relate to franchise fees which we classify as “Deferred revenue” and customer loyalty program obligations which are classified with “Accrued expenses and other current liabilities.” During the three and six months ended July 1, 2018, the Company recognized $3.1 million and $7.0 million in revenue, respectively, related to deferred revenue and customer loyalty program. The contract liability balances are included in the following (in thousands): July 1, 2018 January 1, 2018 Change Deferred revenue $ 17,755 $ 15,850 $ 1,905 Customer loyalty program 15,800 14,724 1,076 Total contract liabilities $ 33,555 $ 30,574 $ 2,981

Stockholders' Equity _ (Deficit

Stockholders' Equity / (Deficit)	6 Months Ended
	Jul. 01, 2018
Stockholders' Equity / (Deficit)
Stockholders' Equity / (Deficit)	5. Stockholders’ Equity / (Deficit) Shares Authorized and Outstanding The Company has authorized 5.0 million shares of preferred stock and 100.0 million shares of common stock. The Company’s outstanding shares of common stock, net of repurchased common stock, were 31.5 million shares at July 1, 2018 and 33.9 million shares at December 31, 2017. There were no shares of preferred stock issued or outstanding at July 1, 2018 and December 31, 2017. Share Repurchase Program Our Board of Directors has authorized the repurchase of up to $2.075 billion of common stock under a share repurchase program that began on December 9, 1999 and expires on February 27, 2019. Funding for the share repurchase program has been provided through our credit facility, operating cash flow, stock option exercises and cash and cash equivalents. On March 1, 2018, the Company announced a $100 million accelerated share repurchase agreement (“ASR Agreement”) with Bank of America, N.A. (“BofAML”). Pursuant to the terms of the ASR Agreement, we paid BofAML $100.0 million in cash, and on March 6, 2018, we received an initial delivery of approximately 1.3 million shares of common stock for approximately $78.0 million. The remaining $22.0 million of the ASR Agreement was completed May 14, 2018 delivering approximately 400,000 additional shares. Under the competed ASR Agreement, approximately 1.7 million shares were repurchased for $100.0 million. Cash Dividend The Company paid dividends of approximately $14.8 million ($0.45 per common share) during the six months of 2018. Subsequent to the second quarter on August 1, 2018, our Board of Directors declared a third quarter dividend of $0.225 per common share (approximately $7.2 million based on current shareholders of record). The dividend will be paid on August 24, 2018 to shareholders of record as of the close of business on August 13, 2018. Stockholder Rights Plan On July 22, 2018, the Board of Directors of the Company approved the adoption of a limited duration stockholder rights plan (the “Rights Plan”) with an expiration date of July 22, 2019 and an ownership trigger threshold of 15% (with a threshold of 31% applied to John H. Schnatter, together with his affiliates and family members). In connection with the Rights Plan, the Board of Directors authorized and declared a dividend to stockholders of record at the close of business on August 2, 2018 of one preferred share purchase right (a “Right”) for each outstanding share of Papa John’s common stock. Upon certain triggering events, each Right would entitle the holder to purchase from the Company one one-thousandth (subject to adjustment) of one share of Series A Junior Participating Preferred Stock, $0.01 par value per share of the Company (“Preferred Stock”) at an exercise price of $250.00 (the “Exercise Price”) per one one-thousandth of a share of Preferred Stock. In addition, if a person or group acquires beneficial ownership of 15% or more of the Company’s common stock (or in the case of Mr. Schnatter, 31% or more) without prior board approval, each holder of a Right (other than the acquiring person or group whose Rights will become void) will have the right to purchase, upon payment of the Exercise Price and in accordance with the terms of the Rights Plan, a number of shares of the Company’s common stock having a market value of twice the Exercise Price. The complete terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”), dated as of July 22, 2018, between the Company and Computershare Trust Company, N.A., as rights agent. The Rights expire on July 22, 2019 or upon an earlier redemption or exchange as provided in the Rights Agreement.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 01, 2018
Earnings Per Share
Earnings Per Share	6. We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. We consider time-based restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to the Company in determining net income attributable to common shareholders. The calculations of basic and diluted earnings per common share are as follows (in thousands, except per-share data): Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, 2018 2017 2018 2017 Basic earnings per common share: Net income attributable to the Company $ 11,791 $ 23,538 $ 28,528 $ Change in noncontrolling interest redemption value — 662 — 1,182 Net income attributable to participating securities (72) (99) (147) (216) Net income attributable to common shareholders $ 11,719 $ 24,101 $ 28,381 $ 52,932 Weighted average common shares outstanding 31,941 36,732 32,610 36,771 Basic earnings per common share $ 0.37 $ 0.66 $ 0.87 $ 1.44 Diluted earnings per common share: Net income attributable to common shareholders $ 11,719 $ 24,101 $ 28,381 $ 52,932 Weighted average common shares outstanding 31,941 36,732 32,610 36,771 Dilutive effect of outstanding equity awards (a) 234 485 250 512 Diluted weighted average common shares outstanding 32,175 37,217 32,860 37,283 Diluted earnings per common share $ 0.36 $ 0.65 $ 0.86 $ 1.42 (a) Excludes 1,257 and 1,143 awards for the three and sixth months ended July 1, 2018, respectively, and 325 and 215 awards for the three and six months ended June 25, 2017, respectively, as the effect of including such awards would have been antidilutive.

Divestitures

Divestitures	6 Months Ended
	Jul. 01, 2018
Divestitures
Divestitures	7. In the first quarter of 2018, the Company refranchised 31 restaurants owned through a joint venture in the Denver, Colorado market. The Company held a 60% ownership share in the restaurants being refranchised. The noncontrolling interest portion of the joint venture arrangement was previously recorded at redemption value within the Condensed Consolidated Balance Sheet. Total consideration for the asset sale of the restaurants was $4.8 million, consisting of cash proceeds of $3.7 million, including cash paid for various working capital items, and notes financed by Papa John’s for $1.1 million. In connection with the divestiture, we wrote off $700,000 of goodwill. This goodwill was allocated based on the relative fair value of the sales proceeds versus the total fair value of the Company-owned restaurants’ reporting unit. As a result of assigning our interest in obligations under property leases as a condition of the refranchising of the Denver market, we are contingently liable for payment of the 31 leases. These leases have varying terms, the latest of which expires in 2024. As of July 1, 2018, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $3.6 million. The fair value of the guarantee is not material. On June 15, 2018, the Company refranchised 34 Company-owned restaurants and a quality control center located in Beijing and Tianjin, China. The assets and liabilities associated with the China operations were previously classified as Held for Sale in the Condensed Consolidated Balance Sheet as of December 31, 2017. We recorded a pre-tax loss of approximately $1.9 million associated with the sale of the restaurants and reversed $1.3 million of accumulated other comprehensive income related to foreign currency translation as part of the disposal. The $1.9 million pre-tax loss is recorded in refranchising losses, net on the Condensed Consolidated Statements of Income. In addition, we also had $2.4 million of additional tax expense associated with the China refranchise. This additional tax expense is primarily attributable to the required recapture of operating losses previously taken by the Company. Subsequent to the second quarter on July 2, 2018, the Company completed the refranchising of 31 stores owned through a joint venture in the Minneapolis, Minnesota market for $3.75 million. The Company holds a 70% ownership share in the stores being refranchised. We do not expect the divestiture to result in a significant refranchising gain or loss. The following summarizes the assets that are held for sale (in thousands) as of July 1, 2018 related to the Minneapolis, Minnesota market: Property and equipment $ 1,936 Goodwill 678 Inventory 153 Other 19 Assets held for sale $ 2,786

Debt

Debt	6 Months Ended
	Jul. 01, 2018
Debt
Debt	8. Long-term debt, net consists of the following (in thousands): July 1, December 31, 2018 2017 Outstanding debt $ 579,400 $ 470,000 Unamortized debt issuance costs (3,013) (3,435) Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion, net $ 556,387 $ 446,565 Our outstanding debt of $579.4 million at July 1, 2018 represented amounts outstanding under our credit agreement executed in August 2017. Our credit agreement provides for an unsecured revolving credit facility in an aggregate principal amount of $600.0 million (the “Revolving Facility”) and an unsecured term loan facility in an aggregate principal amount of $400.0 million (the “Term Loan Facility” and together with the Revolving Facility, the “Facilities”). Additionally, we have the option to increase the Revolving Facility or the Term Loan Facility in an aggregate amount of up to $300.0 million, subject to certain conditions. Our outstanding debt as of July 1, 2018 under the Facilities of $579.4 million was composed of $385.0 million outstanding under the Term Loan Facility and $194.4 million outstanding under the Revolving Facility. Including outstanding letters of credit, the remaining availability under the Facilities was approximately $371.8 million as of July 1, 2018. In connection with our credit agreement, the Company capitalized $3.2 million of debt issuance costs, which are being amortized into interest expense, over the term of the Facilities. Loans under the Facilities accrue interest at a per annum rate equal to, at the Company’s election, either a LIBOR rate plus a margin ranging from 75 to 200 basis points or a base rate (generally determined by a prime rate, federal funds rate or a LIBOR rate plus 1.00%) plus a margin ranging from 0 to 100 basis points. In each case, the actual margin is determined according to a ratio of the Company’s total indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the then most recently ended four-quarter period (the “ Leverage Ratio ”). An unused commitment fee at a rate ranging from 15 to 30 basis points per annum, determined according to the Leverage Ratio, applies to the unutilized commitments under the Revolving Facility. Loans outstanding under the credit agreement may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings for which a LIBOR rate election is in effect. Up to $35.0 million of the Revolving Facility may be advanced in certain agreed foreign currencies, including Euros, Pounds Sterling, Canadian Dollars, Japanese Yen, and Mexican Pesos . The Facilities mature on August 30, 2022. Quarterly amortization payments are required to be made on the Term Loan Facility in the amount of $5.0 million which began in the fourth quarter of 2017. The obligations under the credit agreement are guaranteed by certain direct and indirect material subsidiaries of the Company. The credit agreement contains customary affirmative and negative covenants, including financial covenants requiring the maintenance of specified fixed charges and leverage ratios. At July 1, 2018, we were in compliance with these financial covenants. We attempt to minimize interest risk exposure by fixing our rate through the utilization of interest rate swaps, which are derivative financial instruments. Our swaps are entered into with financial institutions that participate in our credit agreement. By using a derivative instrument to hedge exposures to changes in interest rates, we expose ourselves to credit risk. Credit risk is due to the possible failure of the counterparty to perform under the terms of the derivative contract. We use interest rate swaps to hedge against the effects of potential interest rate increases on borrowings under our Facilities. As of July 1, 2018, we have the following interest rate swap agreements: Effective Dates Floating Rate Debt Fixed Rates April 30, 2018 through April 30, 2023 $ 55 million 2.33 % April 30, 2018 through April 30, 2023 $ 35 million 2.36 % April 30, 2018 through April 30, 2023 $ 35 million 2.34 % January 30, 2018 through August 30, 2022 $ 100 million 1.99 % January 30, 2018 through August 30, 2022 $ 75 million 1.99 % January 30, 2018 through August 30, 2022 $ 75 million 2.00 % January 30, 2018 through August 30, 2022 $ 25 million 1.99 % The gain or loss on the swaps is recognized in other comprehensive income/(loss) and reclassified into earnings as adjustments to interest expense in the same period or periods during which the swaps affect earnings. Gains or losses on the swaps representing hedge components excluded from the assessment of effectiveness are recognized in current earnings. The following table provides information on the location and amounts of our swaps in the accompanying condensed consolidated financial statements (in thousands): Interest Rate Swap Derivatives Fair Value Fair Value July 1, December 31, Balance Sheet Location 2018 2017 Other current and long-term assets $ 10,203 $ 651 There were no derivatives that were not designated as hedging instruments. The effect of derivative instruments on the accompanying condensed consolidated financial statements is as follows (in thousands): Location of Gain Amount of Gain Derivatives - Amount of Gain or or (Loss) or (Loss) Total Interest Expense Cash Flow (Loss) Recognized Reclassified from Reclassified from on Consolidated Hedging in AOCI/AOCL AOCI/AOCL into AOCI/AOCL into Statements of Relationships on Derivative Income Income Income Interest rate swaps for the three months ended: July 1, 2018 $ 2,207 Interest expense $ (89) $ (5,911) June 25, 2017 $ (1,170) Interest expense $ (126) $ (1,894) Interest rate swaps for the six months ended: July 1, 2018 $ 7,380 Interest expense $ (197) $ (11,131) June 25, 2017 $ (1,465) Interest expense $ (324) $ (3,840) The weighted average interest rates on our debt, including the impact of the interest rate swap agreements, were 3.6% for the three and six months ended July 1, 2018, compared to 2.3% for the corresponding prior year periods. Interest paid, including payments made or received under the swaps, was $5.8 million and $2.1 million for the three months ended July 1, 2018 and June 25, 2017, respectively, and $10.7 million and $3.9 million for the six months ended July 1, 2018 and June 25, 2017, respectively. As of July 1, 2018, the portion of the aggregate $10.2 million interest rate swap asset that would be reclassified into earnings during the next twelve months as interest income approximates $2.4 million.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2018
Commitments and Contingencies
Commitments and Contingencies	9. Litigation The Company is involved in a number of lawsuits, claims, investigations and proceedings consisting of intellectual property, employment, consumer, commercial and other matters arising in the ordinary course of business. In accordance with ASC 450, “Contingencies” the Company makes accruals and or disclosures, with respect to these matters, where appropriate. Ameranth, Inc. vs Papa John’s International, Inc. In August 2011, Durling et al v. Papa John’s International, Inc. , is a conditionally certified collective action filed in May 2016 in the United States District Court for the Southern District of New York (“the New York Court”), alleging that corporate restaurant delivery drivers were not properly reimbursed for vehicle mileage and expenses in accordance with the Fair Labor Standards Act ("FLSA"). In July 2018, the New York Court granted a motion to certify a conditional corporate collective class. The Company continues to deny any liability or wrongdoing in this matter and intends to vigorously defend this action. The Company has not recorded any liability related to this lawsuit as of July 1, 2018 as it does not believe a loss is probable or reasonably estimable. Other Matters Subsequent to the end of the second quarter, the Company has experienced negative publicity and consumer sentiment as a result of statements and actions by the Company’s founder and former spokesperson, John H. Schnatter. Mr. Schnatter resigned as Chairman of the Board on July 11, 2018 and a Special Committee of the Board of Directors consisting of all of the independent directors was formed on July 15, 2018 to evaluate and take action with respect to all of the Company’s relationships and arrangements with Mr. Schnatter. Following its formation, the Special Committee terminated Mr. Schnatter’s Founder Agreement, which defined his role in the Company, among other things, as advertising and brand spokesperson for the Company. The Special Committee is also overseeing the previously announced external audit and investigation of all the Company’s existing processes, policies and systems related to diversity and inclusion, supplier and vendor engagement and Papa John’s culture. On July 17, 2018, the Company announced that the Special Committee appointed Akin Gump Strauss Hauer & Feld LLP to oversee the cultural audit and investigation. This audit and investigation is ongoing. In addition, on July 27, 2018, the Company announced that the Board’s Lead Independent Director, Olivia F. Kirtley, had been unanimously appointed by the Board of Directors to serve as Chairman of the Company’s Board of Directors. The Company experienced, and expects to continue to experience, a decline in sales resulting from the aforementioned negative consumer sentiment. While we are still in the process of gathering and estimating future costs, the Company currently expects to incur costs as a result of the recent events that include, but are not limited to, the following: · re-imaging costs at nearly all domestic and international restaurants, · costs to accelerate our replacement of certain branded assets and related marketing efforts, · financial assistance to domestic franchisees, such as short-term royalty reductions, in an effort to mitigate closings, · additional costs for branding initiatives, including but not limited to, launching a new advertising and marketing campaign and promotional activities to mitigate negative consumer sentiment and negative sales trend, · costs associated with a third-party audit of the culture at Papa John’s commissioned by the Special Committee as well as costs associated with implementing new policies and procedures to address any findings as a result of the audit, and · additional legal and advisory costs, including costs associated with the activities of the Special Committee. The Company expects these costs to be material. On July 26, 2018, John H. Schnatter filed a complaint in the Court of Chancery of the State of Delaware seeking to inspect certain books and records of the Company. While the Company believes that the request for inspection is not for a proper purpose under Delaware law and includes certain categories of documents relating to the Special Committee to which Mr. Schnatter is not entitled, the Company will comply with any decision of the Court of Chancery of the State of Delaware.

Segment Information

Segment Information	6 Months Ended
	Jul. 01, 2018
Segment Information
Segment Information	10. We have five reportable segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and “all other” units. The domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is defined as contiguous United States) Company-owned restaurants and derives its revenues principally from retail sales of pizza and side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. The North America commissary segment consists of the operations of our regional dough production and product distribution centers and derives its revenues principally from the sale and distribution of food and paper products to domestic Company-owned and franchised restaurants in the United States and Canada. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and collection of royalties from our franchisees located in the United States and Canada. The international segment principally consists of distribution sales to franchised Papa John’s restaurants located in the United Kingdom and Mexico and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees. International franchisees are defined as all franchise operations outside of the United States and Canada. All other business units that do not meet the quantitative thresholds for determining reportable segments, which are not operating segments, we refer to as our “all other” segment, which consists of operations that derive revenues from the sale, principally to Company-owned and franchised restaurants, of printing and promotional items, franchise contributions to marketing funds and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. Generally, we evaluate performance and allocate resources based on profit or loss from operations before income taxes and intercompany eliminations. Certain administrative and capital costs are allocated to segments based upon predetermined rates or actual estimated resource usage. We account for intercompany sales and transfers as if the sales or transfers were to third parties and eliminate the activity in consolidation. Our reportable segments are business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. No single external customer accounted for 10% or more of our consolidated revenues. Our segment information is as follows: Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, (In thousands) 2018 2017 2018 2017 Revenues Domestic Company-owned restaurants $ 181,379 $ 202,756 $ 371,621 $ 409,652 North America commissaries 153,455 160,059 315,168 331,399 North America franchising 23,912 26,588 48,718 54,195 International 34,652 30,230 70,184 58,748 All others 14,561 15,145 29,637 30,050 Total revenues $ 407,959 $ 434,778 $ 835,328 $ 884,044 Intersegment revenues: North America commissaries $ 51,492 $ 59,202 $ 107,366 $ 120,938 North America franchising 1,016 751 2,035 1,515 International 73 68 143 131 All others 7,578 4,084 15,652 9,110 Total intersegment revenues $ 60,159 $ 64,105 $ 125,196 $ 131,694 Income (loss) before income taxes: Domestic Company-owned restaurants $ 8,304 $ 15,550 $ 15,533 $ 31,037 North America commissaries (1) 8,730 12,088 17,340 24,332 North America franchising 21,380 23,999 43,739 48,874 International 2,278 3,265 5,815 7,609 All others (1) (2) (1,728) 905 (2,638) 1,365 Unallocated corporate expenses (1) (2) (19,324) (19,086) (37,454) (35,467) Elimination of intersegment (profits) losses 65 (1,263) (268) (421) Total income before income taxes $ 19,705 $ 35,458 $ 42,067 $ 77,329 Property and equipment: Domestic Company-owned restaurants $ 229,887 North America commissaries 138,452 International 17,064 All others 65,245 Unallocated corporate assets 195,279 Accumulated depreciation and amortization (418,205) Net property and equipment $ 227,722 (1) The Company refined its overhead allocation process in 2018 resulting in transfers of expenses from Unallocated corporate expenses of $3.4 million to other segments, primarily North America commissaries of $1.9 million and All others of $900,000 for the three months ended July 1, 2018. The six months ended July 1, 2018 included transfers of expenses from Unallocated and corporate expenses of $7.2 million to other segments, primarily North America commissaries of $4.2 million and All others of $1.8 million. These allocations were eliminated in consolidation. (2) Certain prior year amounts have been reclassified to conform to current year presentation.

Reclassifications of Prior Year

Reclassifications of Prior Year Balances	6 Months Ended
	Jul. 01, 2018
Basis of Presentation
Reclassifications of Prior Year Balances	Note 11. Reclassifications of Prior Year Balances As shown in the table below we have reclassified certain prior year amounts within the Condensed Consolidated Statements of Income for the three and six months ended June 25, 2017 in order to conform with current year presentation. These reclassifications had no effect on previously reported total consolidated revenues, total costs and expenses and net income. Papa John's International, Inc. and Subsidiaries Condensed Consolidated Statements of Income Summary of Income Statement Presentation Reclassifications Three Months Ended June 25, 2017 (In thousands, except per share amounts) As reported Reclassifications Adjusted Revenues: North America commissary and other sales (1) 175,204 (15,145) 160,059 International (2) 30,230 (2,985) 27,245 Other revenues (1) (2) - 18,130 18,130 Costs and expenses: North America commissary and other expenses (1) 162,989 (13,517) 149,472 International expenses (2) 19,482 (2,210) 17,272 Other expenses (1) (2) (3) - 17,482 17,482 General and administrative expenses (3) 42,003 (1,755) 40,248 Six Months Ended June 25, 2017 (In thousands, except per share amounts) As reported Reclassifications Adjusted Revenues: North America commissary and other sales (1) 361,449 (30,050) 331,399 International (2) 58,748 (5,881) 52,867 Other revenues (1) (2) - 35,931 35,931 Costs and expenses: North America commissary and other expenses (1) 336,701 (27,272) 309,429 International expenses (2) 37,472 (4,409) 33,063 Other expenses (1) (2) (3) - 35,029 35,029 General and administrative expenses (3) 80,010 (3,348) 76,662 (1) Includes reclassification of previous amounts reported in North America commissary and other sales and expenses including print and promotional items, information systems and related services used in restaurant operations, including our point of sale system, online and other technology-based ordering platforms. (2) Includes reclassification of previous amounts reported in International related to advertising expenses and rental income and expenses for United Kingdom head leases which are subleased to United Kingdom franchisees. (3) Includes reclassification of various technology related expenditures for fee-based services discussed in (1) above and advertising expenses to be consistent with 2018 presentation.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2018
Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items that are subject to such estimates and assumptions include allowance for doubtful accounts and notes receivable, intangible assets, online customer loyalty program obligation, insurance reserves and tax reserves. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates.
Noncontrolling Interests	Noncontrolling Interests At the beginning of 2018, Papa John’s had five joint venture arrangements in which there were noncontrolling interests held by third parties. In the first quarter of 2018, one joint venture was divested and an additional joint venture was divested subsequent to the end of the second quarter. That joint venture was classified as held for sale as of July 1, 2018. As of July 1, 2018, there were 215 restaurants that comprise these joint ventures, including our held for sale joint venture as compared to 223 restaurants at June 25, 2017. As of the beginning of the third quarter of 2018, there were 184 restaurants under these joint venture arrangements. See Note 7 for more information on these related divestitures. We are required to report the consolidated net income at amounts attributable to the Company and the noncontrolling interests. Additionally, disclosures are required to clearly identify and distinguish between the interests of the Company and the interests of the noncontrolling owners, including a disclosure on the face of the Condensed Consolidated Statements of Income attributable to the noncontrolling interest holders. 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 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
Revenue Recognition	Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Delivery costs, including freight associated with our domestic commissary and other sales are accounted for as fulfillment costs and are included in operating costs. As further described in Accounting Standards Adopted and Note 3, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”), in the first quarter of 2018. Prior year revenue recognition follows ASC Topic 605, Revenue Recognition. The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Company-owned Restaurant Sales The domestic and international Company-owned restaurants principally generate revenue from retail sales of high-quality pizza, side items including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. Revenues from Company-owned restaurants are recognized when the products are delivered to or carried out by customers. Our domestic customer loyalty program, Papa Rewards, is a spend-based program that rewards customers with points for each online purchase. Papa Rewards points are accumulated and redeemed online for free products. The accrued liability in the Condensed Consolidated Balance Sheets, and corresponding reduction of Company-owned restaurant sales in the Condensed Consolidated Statements of Income is for the estimated reward redemptions at domestic Company-owned restaurants based upon historical redemption patterns. Currently, the liability related to Papa Rewards is calculated using the estimated selling price of the products for which rewards are expected to be redeemed. Revenue is recognized when the customer redeems points for products. Prior to the adoption of Topic 606, the liability related to Papa Rewards was estimated using the incremental cost accrual model which was based on the expected cost to satisfy the award and the corresponding expense was recorded in general and administrative expenses in the Condensed Consolidated Statements of Income. Commissary Sales Commissary sales are comprised of food and supplies sold to franchised restaurants and are recognized as revenue upon shipment or delivery of the related products to the franchisees. Payments are generally due within 30 days. Franchise Royalties and Fees Franchise royalties which are based on a percentage of franchise restaurant sales are recognized as sales occur. Royalty reductions, offered as part of a new store development incentive or as incentive for other behaviors including acceleration of restaurant remodels or equipment upgrades, are recognized at the same time as the related royalty as they are not separately distinguishable from the full royalty rate. Franchise royalties are billed on a monthly basis. The majority of initial franchise license fees and area development exclusivity fees are from international locations. Initial franchise license fees are billed at the store opening date. Area development exclusivity fees are billed upon execution of the development agreements which grant the right to develop franchised restaurants in future periods in specific geographic areas. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Franchise license renewal fees for both domestic and international locations, which generally occur every 10 years, are billed before the renewal date. The pre-opening services provided to franchisees do not contain separate and distinct performance obligations from the franchise right; thus, the fees collected will be amortized on a straight-line basis beginning at the store opening date through the term of the franchise agreement, which is typically 10 years. Fees received for future license renewal periods are amortized over the life of the renewal period. For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for license renewal fees. The Company offers various incentive programs for franchisees including royalty incentives, new restaurant opening incentives (i.e. development incentives) and other support initiatives. Royalties, franchise fees and commissary sales are reduced to reflect any incentives earned or granted under these programs that are in the form of discounts. Other development incentives for opening restaurants are offered in the form of Company equipment through a lease agreement at substantially no cost to the franchisee. This equipment is amortized by us over the term of the lease agreement, which is generally three to five years, and is recognized in general and administrative expenses in our Condensed Consolidated Statements of Income. The equipment lease agreement has separate and distinguishable obligations from the franchise right and is accounted for under ASC Topic 840, Leases. Other Revenues Fees for information services, including software maintenance fees, help desk fees and online ordering fees are recognized as revenue as such services are provided and are included in other revenue. Revenues for printing, promotional items, and direct mail marketing services are recognized upon shipment of the related products to franchisees and other customers. Direct mail advertising discounts are also periodically offered by our Preferred Marketing Solutions subsidiary. Other revenues are reduced to reflect these advertising discounts. Rental income, primarily derived from properties leased by the Company and subleased to franchisees in the United Kingdom, is recognized on a straight-line basis over the respective operating lease terms, in accordance with ASC Topic 840, Leases. Franchise Marketing Fund revenues represent contributions collected by various international and domestic marketing funds (“Co-op” or “Co-operative”) where we have determined that we have control over the activities of the fund. Contributions are based on a percentage of monthly restaurant sales. The adoption of Topic 606 revised the principal versus agent determination of these arrangements. When we are determined to be the principal in these arrangements, advertising fund contributions and expenditures are reported on a gross basis in the Condensed Consolidated Statements of Income. Our obligation related to these funds is to develop and conduct advertising activities in a specific country, region, or market, including the placement of electronic and print materials. Marketing fund contributions are billed monthly. For periods prior to the adoption of Topic 606, the revenues and expenses of certain international advertising funds and the Co-op Funds in which we possess majority voting rights, were included in our Condensed Consolidated Statements of Income on a net basis as we previously concluded we were the agent in regard to the funds based upon principal/agent determinations in industry-specific guidance in GAAP that was in effect during those time periods.
Deferred Income Tax Accounts and Tax Reserves	Deferred Income Tax Accounts and Tax Reserves We are subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining Papa John’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable and those deferred. We use an estimated annual effective rate based on expected annual income to determine our quarterly provision for income taxes. Discrete items are recorded in the quarter in which they occur. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax attribute carryforwards (e.g., net operating losses, capital losses, and foreign tax credits). The effect on deferred taxes of changes in tax rates is recognized in the period in which the new tax rate is enacted. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts we expect to realize. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, significantly decreasing the U.S. federal income tax rate for corporations effective January 1, 2018. As a result, we remeasured our deferred tax assets, liabilities and related valuation allowances in 2017. This remeasurement yielded a one-time benefit of approximately $7.0 million due to the lower income tax rate in 2017. Given the substantial changes associated with the Tax Act, the estimated financial impacts for 2017 are provisional and subject to further interpretation and clarification of the Tax Act during 2018. As of July 1, 2018, the Company has not made any material adjustments to the December 30, 2017 estimates. Our net deferred income tax liability was approximately $4.4 million at July 1, 2018. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), that allows for an entity to reclassify disproportionate income tax effects in accumulated other comprehensive income (loss) (“AOCI”) caused by the Tax Act to retained earnings. See “Accounting Standards Adopted” section below for additional details. Tax authorities periodically audit the Company. We record reserves and related interest and penalties for identified exposures as income tax expense. We evaluate these issues on a quarterly basis to adjust for events, such as statute of limitations expirations, court or state rulings or audit settlements, which may impact our ultimate payment for such exposures.
Fair Value Measurements and Disclosures	Fair Value Measurements and Disclosures The Company is required to determine the fair value of financial assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. Fair value is a market-based measurement, not an entity specific measurement. The fair value of certain assets and liabilities approximates carrying value because of the short-term nature of the accounts, including cash and cash equivalents, accounts receivable and accounts payable. The carrying value of our notes receivable, net of allowances, also approximates fair value. The fair value of the amount outstanding under our term debt and revolving credit facility approximates its carrying value due to its variable market-based interest rate (Level 2). Certain assets and liabilities are measured at fair value on a recurring basis and are required to be classified and disclosed in one of the following categories: · Level 1: Quoted market prices in active markets for identical assets or liabilities. · Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. · Level 3: Unobservable inputs that are not corroborated by market data. 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”). Our assets and liabilities that were measured at fair value on a non-recurring basis as of December 31, 2017 include assets and liabilities held for sale. The fair value was determined using a market-based approach with unobservable inputs (Level 3) less any estimated selling costs. There were no transfers among levels within the fair value hierarchy during the six months ended July 1, 2018.
Variable Interest Entity	Variable Interest Entity Papa John’s domestic restaurants, both Company-owned and franchised, participate in Papa John’s Marketing Fund, Inc. (“PJMF”), a nonstock corporation designed to operate at break-even for the purpose of designing and administering advertising and promotional programs for all participating domestic restaurants. PJMF is a variable interest entity as it does not have sufficient equity to fund its operations without ongoing financial support and contributions from its members. Based on the ownership and governance structure and operating procedures of PJMF, we have determined that we do not have the power to direct the most significant activities of PJMF and therefore are not the primary beneficiary. Accordingly, consolidation of PJMF is not appropriate.
Recent Accounting Pronouncements	Accounting Standards Adopted Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single revenue recognition framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract. The Company adopted Topic 606 as of January 1, 2018. See Note 3 for additional information. Certain Tax effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, which allows for an entity to reclassify disproportionate income tax in AOCI caused by the Tax Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted, including interim periods within those years. The Company adopted ASU 2018-02 in the first quarter of 2018 by electing to reclassify the income tax effects from AOCI to retained earnings. The impact of the adoption was not material to our condensed consolidated financial statements. Accounting Standards to be Adopted in Future Periods Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”), which amends leasing guidance by requiring companies to recognize a right-of-use asset and a lease liability for all operating and capital leases (financing) with lease terms greater than twelve months. The lease liability will be equal to the present value of lease payments. The lease asset will be based on the lease liability, subject to adjustment, such as for initial direct costs. For income statement purposes, leases will continue to be classified as operating or capital (financing) with lease expense in both cases calculated substantially the same as under the prior leasing guidance. In July 2018, the FASB issued the following amendments to clarify the implementation guidance: ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements.” The amendment allows for a modified retrospective adoption approach and new required lease disclosures for all leases existing or entered into after either the beginning of the year of adoption or the earliest comparative period in the consolidated financial statements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company has not yet determined the full impact of the adoption on its consolidated financial statements but expects the adoption will result in a significant increase in the non-current assets and liabilities reported on our Consolidated Balance Sheet. Goodwill In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other,” (“ASU 2017-04”), which simplifies the accounting for goodwill. ASU 2017-04 eliminates the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. The goodwill impairment is the difference between the carrying value and fair value, not to exceed the carrying amount. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. The Company is currently evaluating this standard and its potential impact on our consolidated financial statements.
Reclassification	Reclassification Certain prior year amounts have been reclassified in the Condensed Consolidated Statements of Income. See Note 11 for additional information.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	6 Months Ended
	Jul. 01, 2018
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 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”).

Adoption of ASU 2014-09, "Rev21

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" (Tables)	6 Months Ended
	Jul. 01, 2018
Adoption of ASU 2014-09, "Revenue from Contracts with Customers"
Schedule of impacts of adoption of ASU 2014-09	The following chart presents the specific line items impacted by the cumulative adjustment. Adjusted As Reported Balance Sheet December 31, Total at January 1, (In thousands, except per share amounts) 2017 Adjustments 2018 Assets Current assets: Cash and cash equivalents $ 22,345 $ 4,279 $ 26,624 Accounts receivable, net 64,644 493 65,137 Notes receivable, net 4,333 — 4,333 Income tax receivable 3,903 — 3,903 Inventories 30,620 — 30,620 Prepaid expenses 28,522 (4,959) 23,563 Other current assets 9,494 — 9,494 Assets held for sale 6,133 — 6,133 Total current assets 169,994 (187) 169,807 Property and equipment, net 234,331 — 234,331 Notes receivable, less current portion, net 15,568 — 15,568 Goodwill 86,892 — 86,892 Deferred income taxes, net 585 — 585 Other assets 48,183 (907) 47,276 Total assets $ 555,553 $ (1,094) $ 554,459 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $ 32,006 $ (2,161) $ 29,845 Income and other taxes payable 10,561 — 10,561 Accrued expenses and other current liabilities 70,293 15,860 86,153 Deferred revenue current — 2,400 2,400 Current portion of long-term debt 20,000 — 20,000 Total current liabilities 132,860 16,099 148,959 Deferred revenue 2,652 10,798 13,450 Long-term debt, less current portion, net 446,565 — 446,565 Deferred income taxes, net 12,546 (6,464) 6,082 Other long-term liabilities 60,146 — 60,146 Total liabilities 654,769 20,433 675,202 Redeemable noncontrolling interests 6,738 — 6,738 Stockholders’ equity (deficit): Preferred stock ($0.01 par value per share; no shares issued) — — — Common stock ($0.01 par value per share; issued 44,221 at December 31, 2017 442 — 442 Additional paid-in capital 184,785 — 184,785 Accumulated other comprehensive loss (2,117) — (2,117) Retained earnings 292,251 (21,527) 270,724 Treasury stock (10,290 shares at December 31, 2017, at cost) (597,072) — (597,072) Total stockholders’ (deficit), net of noncontrolling interests (121,711) (21,527) (143,238) Noncontrolling interests in subsidiaries 15,757 — 15,757 Total stockholders’ (deficit) (105,954) (21,527) (127,481) Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit) $ 555,553 $ (1,094) $ 554,459 The impact of adoption for the second quarter of 2018 is as follows: As Reported Balance Sheet July 1, Total Without Adoption (In thousands, except per share amounts) 2018 Adjustments of Topic 606 Assets Current assets: Cash and cash equivalents $ 25,719 $ (3,130) $ 22,589 Accounts receivable, net 62,973 (359) 62,614 Notes receivable, net 5,180 — 5,180 Income tax receivable — — — Inventories 27,109 — 27,109 Prepaid expenses 26,729 4,827 31,556 Other current assets 7,223 — 7,223 Assets held for sale 2,786 — 2,786 Total current assets 157,719 1,338 159,057 Property and equipment, net 227,722 — 227,722 Notes receivable, less current portion, net 15,648 — 15,648 Goodwill 85,064 — 85,064 Deferred income taxes, net 709 — 709 Other assets 71,309 907 72,216 Total assets $ 558,171 $ 2,245 $ 560,416 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $ 33,307 $ 1,493 $ 34,800 Income and other taxes payable 8,904 — 8,904 Accrued expenses and other current liabilities 81,197 (15,457) 65,740 Deferred revenue current 2,426 (2,426) — Current portion of long-term debt 20,000 — 20,000 Total current liabilities 145,834 (16,390) 129,444 Deferred revenue 15,329 (11,157) 4,172 Long-term debt, less current portion, net 556,387 — 556,387 Deferred income taxes, net 5,140 6,682 11,822 Other long-term liabilities 78,515 — 78,515 Total liabilities 801,205 (20,865) 780,340 Redeemable noncontrolling interests 7,356 — 7,356 Stockholders’ equity (deficit): Preferred stock ($0.01 par value per share; no shares issued) — — — Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018) 443 — 443 Additional paid-in capital 188,026 — 188,026 Accumulated other comprehensive income (loss) 2,240 — 2,240 Retained earnings 285,460 23,091 308,551 Treasury stock (12,733 shares at July 1, 2018, at cost) (742,695) — (742,695) Total stockholders’ (deficit), net of noncontrolling interests (266,526) 23,091 (243,435) Noncontrolling interests in subsidiaries 16,136 19 16,155 Total stockholders’ (deficit) (250,390) 23,110 (227,280) Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit) $ 558,171 $ 2,245 $ 560,416 As Reported Three Months Ended Income Statement July 1, Total Without Adoption of (In thousands, except per share amounts) 2018 Adjustments Topic 606 Revenues: Domestic Company-owned restaurant sales $ 181,379 $ 812 $ 182,191 North America franchise royalties and fees 23,912 82 23,994 North America commissary 153,455 — 153,455 International 29,069 175 29,244 Other revenues 20,144 (2,883) 17,261 Total revenues 407,959 (1,814) 406,145 Costs and expenses: Operating costs (excluding depreciation and amortization shown separately below): Domestic Company-owned restaurant expenses 147,781 (272) 147,509 North America commissary 143,300 — 143,300 International expenses 18,248 — 18,248 Other expenses 20,698 (2,951) 17,747 General and administrative expenses 38,712 34 38,746 Depreciation and amortization 11,731 — 11,731 Total costs and expenses 380,470 (3,189) 377,281 Refranchising loss, net (2,122) — (2,122) Operating income 25,367 1,375 26,742 Net Interest expense (5,662) — (5,662) Income before income taxes 19,705 1,375 21,080 Income tax expense 7,040 306 7,346 Net income before attribution to noncontrolling interests 12,665 1,069 13,734 Income attributable to noncontrolling interests (874) — (874) Net income attributable to the Company $ 11,791 $ 1,069 $ 12,860 Calculation of income for earnings per share: Net income attributable to the Company $ 11,791 $ 1,069 $ 12,860 Net income attributable to participating securities (72) — (72) Net income attributable to common shareholders $ 11,719 $ 1,069 $ 12,788 Basic earnings per common share $ 0.37 $ 0.03 $ 0.40 Diluted earnings per common share $ 0.36 $ 0.03 $ 0.40 Basic weighted average common shares outstanding 31,941 31,941 31,941 Diluted weighted average common shares outstanding 32,175 32,175 32,175 As Reported Six Months Ended Income Statement July 1, Total Without Adoption of (In thousands, except per share amounts) 2018 Adjustments Topic 606 Revenues: Domestic Company-owned restaurant sales $ 371,621 $ 1,076 $ 372,697 North America franchise royalties and fees 48,718 120 48,838 North America commissary 315,168 — 315,168 International 59,183 324 59,507 Other revenues 40,638 (5,770) 34,868 Total revenues 835,328 (4,250) 831,078 Costs and expenses: Operating costs (excluding depreciation and amortization shown separately below): Domestic Company-owned restaurant expenses 305,100 (338) 304,762 North America commissary 294,981 — 294,981 International expenses 37,278 — 37,278 Other expenses 41,656 (6,310) 35,346 General and administrative expenses 78,441 538 78,979 Depreciation and amortization 23,270 — 23,270 Total costs and expenses 780,726 (6,110) 774,616 Refranchising loss, net (1,918) — (1,918) Operating income 52,684 1,860 54,544 Net Interest expense (10,617) — (10,617) Income before income taxes 42,067 1,860 43,927 Income tax expense 12,022 418 12,440 Net income before attribution to noncontrolling interests 30,045 1,442 31,487 Income attributable to noncontrolling interests (1,517) — (1,517) Net income attributable to the Company $ 28,528 $ 1,442 $ 29,970 Calculation of income for earnings per share: Net income attributable to the Company $ 28,528 $ 1,442 $ 29,970 Net income attributable to participating securities (147) — (147) Net income attributable to common shareholders $ 28,381 $ 1,442 $ 29,823 Basic earnings per common share $ 0.87 $ 0.04 $ 0.91 Diluted earnings per common share $ 0.86 $ 0.04 $ 0.91 Basic weighted average common shares outstanding 32,610 32,610 32,610 Diluted weighted average common shares outstanding 32,860 32,860 32,860
Schedule of estimated revenue expected to be recognized in the future	The following table (in thousands) includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. Performance Obligations by Period Less than 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Thereafter Total Franchise Fees $ 2,426 $ 2,179 $ 1,948 $ 1,732 $ 1,503 $ 3,795 $ 13,583

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jul. 01, 2018
Revenue Recognition
Schedule of revenue disaggregated by major product line	In the following table (in thousands), revenue is disaggregated by major product line. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Reportable Segments Three Months Ended July 1, 2018 Major Products/Services Lines Domestic Company-owned restaurants North America commissaries North America franchising International All others Total Company-owned restaurant sales $ 181,379 $ - $ - $ 2,783 $ - $ 184,162 Commissary sales - 204,947 - 17,299 - 222,246 Franchise royalties and fees - - 24,928 8,987 - 33,915 Other revenues - - - 5,656 22,139 27,795 Eliminations - (51,492) (1,016) (73) (7,578) (60,159) Total $ 181,379 $ 153,455 $ 23,912 $ 34,652 $ 14,561 $ 407,959 Reportable Segments Six Months Ended July 1, 2018 Major Products/Services Lines Domestic Company-owned restaurants North America commissaries North America franchising International All others Total Company-owned restaurant sales $ 371,621 $ - $ - $ 6,237 $ - $ 377,858 Commissary sales - 422,534 - 34,978 - 457,512 Franchise royalties and fees - - 50,753 17,969 - 68,722 Other revenues - - - 11,143 45,289 56,432 Eliminations - (107,366) (2,035) (143) (15,652) (125,196) Total $ 371,621 $ 315,168 $ 48,718 $ 70,184 $ 29,637 $ 835,328
Schedule of information about contract liabilities	The contract liability balances are included in the following (in thousands): July 1, 2018 January 1, 2018 Change Deferred revenue $ 17,755 $ 15,850 $ 1,905 Customer loyalty program 15,800 14,724 1,076 Total contract liabilities $ 33,555 $ 30,574 $ 2,981

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 01, 2018
Earnings Per Share
Schedule of Earnings Per Share, Basic and Diluted	The calculations of basic and diluted earnings per common share are as follows (in thousands, except per-share data): Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, 2018 2017 2018 2017 Basic earnings per common share: Net income attributable to the Company $ 11,791 $ 23,538 $ 28,528 $ Change in noncontrolling interest redemption value — 662 — 1,182 Net income attributable to participating securities (72) (99) (147) (216) Net income attributable to common shareholders $ 11,719 $ 24,101 $ 28,381 $ 52,932 Weighted average common shares outstanding 31,941 36,732 32,610 36,771 Basic earnings per common share $ 0.37 $ 0.66 $ 0.87 $ 1.44 Diluted earnings per common share: Net income attributable to common shareholders $ 11,719 $ 24,101 $ 28,381 $ 52,932 Weighted average common shares outstanding 31,941 36,732 32,610 36,771 Dilutive effect of outstanding equity awards (a) 234 485 250 512 Diluted weighted average common shares outstanding 32,175 37,217 32,860 37,283 Diluted earnings per common share $ 0.36 $ 0.65 $ 0.86 $ 1.42 (a) Excludes 1,257 and 1,143 awards for the three and sixth months ended July 1, 2018, respectively, and 325 and 215 awards for the three and six months ended June 25, 2017, respectively, as the effect of including such awards would have been antidilutive.

Divestitures (Tables)

Divestitures (Tables)	6 Months Ended
	Jul. 01, 2018
Divestitures
Summary of Assets Held for Sale Related to the Minneapolis, Minnesota Market	The following summarizes the assets that are held for sale (in thousands) as of July 1, 2018 related to the Minneapolis, Minnesota market: Property and equipment $ 1,936 Goodwill 678 Inventory 153 Other 19 Assets held for sale $ 2,786

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 01, 2018
Debt
Schedule of long-term debt, net	Long-term debt, net consists of the following (in thousands): July 1, December 31, 2018 2017 Outstanding debt $ 579,400 $ 470,000 Unamortized debt issuance costs (3,013) (3,435) Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion, net $ 556,387 $ 446,565
Schedule of Interest Rate Swap Agreements	As of July 1, 2018, we have the following interest rate swap agreements: Effective Dates Floating Rate Debt Fixed Rates April 30, 2018 through April 30, 2023 $ 55 million 2.33 % April 30, 2018 through April 30, 2023 $ 35 million 2.36 % April 30, 2018 through April 30, 2023 $ 35 million 2.34 % January 30, 2018 through August 30, 2022 $ 100 million 1.99 % January 30, 2018 through August 30, 2022 $ 75 million 1.99 % January 30, 2018 through August 30, 2022 $ 75 million 2.00 % January 30, 2018 through August 30, 2022 $ 25 million 1.99 %
Schedule of Location and Amounts of Swaps in the Accompanying Consolidated Financial Statements	The following table provides information on the location and amounts of our swaps in the accompanying condensed consolidated financial statements (in thousands): Interest Rate Swap Derivatives Fair Value Fair Value July 1, December 31, Balance Sheet Location 2018 2017 Other current and long-term assets $ 10,203 $ 651
Schedule of Effect of Derivative Instruments on the Accompanying Consolidated Financial Statements	The effect of derivative instruments on the accompanying condensed consolidated financial statements is as follows (in thousands): Location of Gain Amount of Gain Derivatives - Amount of Gain or or (Loss) or (Loss) Total Interest Expense Cash Flow (Loss) Recognized Reclassified from Reclassified from on Consolidated Hedging in AOCI/AOCL AOCI/AOCL into AOCI/AOCL into Statements of Relationships on Derivative Income Income Income Interest rate swaps for the three months ended: July 1, 2018 $ 2,207 Interest expense $ (89) $ (5,911) June 25, 2017 $ (1,170) Interest expense $ (126) $ (1,894) Interest rate swaps for the six months ended: July 1, 2018 $ 7,380 Interest expense $ (197) $ (11,131) June 25, 2017 $ (1,465) Interest expense $ (324) $ (3,840)

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 01, 2018
Segment Information
Schedule of Segment Reporting Information, by Segment	Our segment information is as follows: Three Months Ended Six Months Ended July 1, June 25, July 1, June 25, (In thousands) 2018 2017 2018 2017 Revenues Domestic Company-owned restaurants $ 181,379 $ 202,756 $ 371,621 $ 409,652 North America commissaries 153,455 160,059 315,168 331,399 North America franchising 23,912 26,588 48,718 54,195 International 34,652 30,230 70,184 58,748 All others 14,561 15,145 29,637 30,050 Total revenues $ 407,959 $ 434,778 $ 835,328 $ 884,044 Intersegment revenues: North America commissaries $ 51,492 $ 59,202 $ 107,366 $ 120,938 North America franchising 1,016 751 2,035 1,515 International 73 68 143 131 All others 7,578 4,084 15,652 9,110 Total intersegment revenues $ 60,159 $ 64,105 $ 125,196 $ 131,694 Income (loss) before income taxes: Domestic Company-owned restaurants $ 8,304 $ 15,550 $ 15,533 $ 31,037 North America commissaries (1) 8,730 12,088 17,340 24,332 North America franchising 21,380 23,999 43,739 48,874 International 2,278 3,265 5,815 7,609 All others (1) (2) (1,728) 905 (2,638) 1,365 Unallocated corporate expenses (1) (2) (19,324) (19,086) (37,454) (35,467) Elimination of intersegment (profits) losses 65 (1,263) (268) (421) Total income before income taxes $ 19,705 $ 35,458 $ 42,067 $ 77,329 Property and equipment: Domestic Company-owned restaurants $ 229,887 North America commissaries 138,452 International 17,064 All others 65,245 Unallocated corporate assets 195,279 Accumulated depreciation and amortization (418,205) Net property and equipment $ 227,722 (1) The Company refined its overhead allocation process in 2018 resulting in transfers of expenses from Unallocated corporate expenses of $3.4 million to other segments, primarily North America commissaries of $1.9 million and All others of $900,000 for the three months ended July 1, 2018. The six months ended July 1, 2018 included transfers of expenses from Unallocated and corporate expenses of $7.2 million to other segments, primarily North America commissaries of $4.2 million and All others of $1.8 million. These allocations were eliminated in consolidation. (2) Certain prior year amounts have been reclassified to conform to current year presentation.

Reclassifications of Prior Ye27

Reclassifications of Prior Year Balances (Tables)	6 Months Ended
	Jul. 01, 2018
Basis of Presentation
Schedule of Certain Prior Year Amounts Reclassified within the Condensed Consolidated Statements of Income	Papa John's International, Inc. and Subsidiaries Condensed Consolidated Statements of Income Summary of Income Statement Presentation Reclassifications Three Months Ended June 25, 2017 (In thousands, except per share amounts) As reported Reclassifications Adjusted Revenues: North America commissary and other sales (1) 175,204 (15,145) 160,059 International (2) 30,230 (2,985) 27,245 Other revenues (1) (2) - 18,130 18,130 Costs and expenses: North America commissary and other expenses (1) 162,989 (13,517) 149,472 International expenses (2) 19,482 (2,210) 17,272 Other expenses (1) (2) (3) - 17,482 17,482 General and administrative expenses (3) 42,003 (1,755) 40,248 Six Months Ended June 25, 2017 (In thousands, except per share amounts) As reported Reclassifications Adjusted Revenues: North America commissary and other sales (1) 361,449 (30,050) 331,399 International (2) 58,748 (5,881) 52,867 Other revenues (1) (2) - 35,931 35,931 Costs and expenses: North America commissary and other expenses (1) 336,701 (27,272) 309,429 International expenses (2) 37,472 (4,409) 33,063 Other expenses (1) (2) (3) - 35,029 35,029 General and administrative expenses (3) 80,010 (3,348) 76,662 (1) Includes reclassification of previous amounts reported in North America commissary and other sales and expenses including print and promotional items, information systems and related services used in restaurant operations, including our point of sale system, online and other technology-based ordering platforms. (2) Includes reclassification of previous amounts reported in International related to advertising expenses and rental income and expenses for United Kingdom head leases which are subleased to United Kingdom franchisees. (3) Includes reclassification of various technology related expenditures for fee-based services discussed in (1) above and advertising expenses to be consistent with 2018 presentation.

Significant Accounting Polici28

Significant Accounting Policies - Noncontrolling Interest and Joint Ventures (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2018USD ($)restaurant	Apr. 01, 2018entity	Jun. 25, 2017USD ($)restaurant	Jul. 01, 2018USD ($)restaurant	Jun. 25, 2017USD ($)restaurant	Jul. 02, 2018restaurant	Jan. 01, 2018entity
Income Amounts Attributable to Noncontrolling Interest, Disclosures
Total income before income taxes	$ 19,705		$ 35,458	$ 42,067	$ 77,329
Joint ventures
Noncontrolling Interests
Number of Joint Ventures Having Noncontrolling Interests | entity							5
Number of joint ventures divested | entity		1
Number of Restaurants | restaurant	215		223	215	223
Income Amounts Attributable to Noncontrolling Interest, Disclosures
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
Joint ventures | Subsequent event
Noncontrolling Interests
Number of Restaurants | restaurant						184

Significant Accounting Polici29

Significant Accounting Policies – Revenue Recognition (Details)	6 Months Ended
	Jul. 01, 2018
Term of franchise agreement	10 years
Minimum
Amortization term of equipment incentives	3 years
Maximum
Amortization term of equipment incentives	5 years

Significant Accounting Polici30

Significant Accounting Policies - Deferred Income Tax Accounts and Tax Reserves (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2017	Jul. 01, 2018
Significant Accounting Policies
Provisional one-time Tax Act tax benefit from remeasurement of deferred tax assets, liabilities and related valuation allowances	$ 7
Net deferred income tax liability		$ 4.4

Significant Accounting Polici31

Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Dec. 31, 2017
Measurement of financial assets and liabilities at fair value on a recurring basis
Transfers among levels within the fair value hierarchy	$ 0
Carrying Value
Measurement of financial assets and liabilities at fair value on a recurring basis
Cash surrender value of life insurance policies	29,771	$ 28,645
Interest rate swap assets	10,203	651
Measured on Recurring Basis | Level 1
Measurement of financial assets and liabilities at fair value on a recurring basis
Cash surrender value of life insurance policies	29,771	28,645
Measured on Recurring Basis | Level 2
Measurement of financial assets and liabilities at fair value on a recurring basis
Interest rate swap assets	$ 10,203	$ 651

Adoption of ASU 2014-09, "Rev32

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" - Cumulative Effect Adjustments (Details) - Accounting Standards Update 2014-09 $ in Millions	Jan. 01, 2018USD ($)
Retained Earnings Adjustments [Line Items]
Cumulative effect adjustment to retained earnings	$ (21.5)
Franchise royalties and fees
Retained Earnings Adjustments [Line Items]
Cumulative effect adjustment to retained earnings	(10.8)
Customer loyalty program
Retained Earnings Adjustments [Line Items]
Cumulative effect adjustment to retained earnings	(8)
Marketing funds
Retained Earnings Adjustments [Line Items]
Cumulative effect adjustment to retained earnings	$ (2.7)

Adoption of ASU 2014-09, "Rev33

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" – Line Items Impacted by Cumulative Adjustment (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017	Jun. 25, 2017	Dec. 25, 2016
Current assets:
Cash and cash equivalents	$ 25,719	$ 26,624	$ 22,345	$ 22,247	$ 15,563
Accounts receivable, net	62,973	65,137	64,644
Notes receivable, net	5,180	4,333	4,333
Income tax receivable		3,903	3,903
Inventories	27,109	30,620	30,620
Prepaid expenses	26,729	23,563	28,522
Other current assets	7,223	9,494	9,494
Assets held for sale	2,786	6,133	6,133
Total current assets	157,719	169,807	169,994
Property and equipment, net	227,722	234,331	234,331
Notes receivable, less current portion, net	15,648	15,568	15,568
Goodwill	85,064	86,892	86,892
Deferred income taxes, net	709	585	585
Other assets	71,309	47,276	48,183
Total assets	558,171	554,459	555,553
Current liabilities:
Accounts payable	33,307	29,845	32,006
Income and other taxes payable	8,904	10,561	10,561
Accrued expenses and other current liabilities	81,197	86,153	70,293
Deferred revenue current	2,426	2,400
Current portion of long-term debt	20,000	20,000	20,000
Total current liabilities	145,834	148,959	132,860
Deferred revenue	15,329	13,450	2,652
Long-term debt, less current portion, net	556,387	446,565	446,565
Deferred income taxes, net	5,140	6,082	12,546
Other long-term liabilities	78,515	60,146	60,146
Total liabilities	801,205	675,202	654,769
Redeemable noncontrolling interests	7,356	6,738	6,738
Stockholders’ (deficit):
Preferred stock ($0.01 par value per share; no shares issued)
Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018 and 44,221 at December 31, 2017)	443	442	442
Additional paid-in capital	188,026	184,785	184,785
Accumulated other comprehensive income (loss)	2,240	(2,117)	(2,117)
Retained earnings	285,460	270,724	292,251
Treasury stock (12,733 shares at July 1, 2018 and 10,290 shares at December 31, 2017, at cost)	(742,695)	(597,072)	(597,072)
Total stockholders’ (deficit), net of noncontrolling interests	(266,526)	(143,238)	(121,711)
Noncontrolling interests in subsidiaries	16,136	15,757	15,757
Total stockholders’ (deficit)	(250,390)	(127,481)	(105,954)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	$ 558,171	554,459	$ 555,553
Preferred stock, par value	$ 0.01		$ 0.01
Preferred stock, shares issued	0		0
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares issued	44,280		44,221
Treasury stock, shares	12,733		10,290
Accounting Standards Update 2014-09 | Total Adjustments
Current assets:
Cash and cash equivalents	$ (3,130)	4,279
Accounts receivable, net	(359)	493
Prepaid expenses	4,827	(4,959)
Total current assets	1,338	(187)
Other assets	907	(907)
Total assets	2,245	(1,094)
Current liabilities:
Accounts payable	1,493	(2,161)
Accrued expenses and other current liabilities	(15,457)	15,860
Deferred revenue current	(2,426)	2,400
Total current liabilities	(16,390)	16,099
Deferred revenue	(11,157)	10,798
Deferred income taxes, net	6,682	(6,464)
Total liabilities	(20,865)	20,433
Stockholders’ (deficit):
Retained earnings	23,091	(21,527)
Total stockholders’ (deficit), net of noncontrolling interests	23,091	(21,527)
Noncontrolling interests in subsidiaries	19
Total stockholders’ (deficit)	23,110	(21,527)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	$ 2,245	$ (1,094)

Adoption of ASU 2014-09, "Rev34

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" – Impact of Adoption for the Second Quarter on the Balance Sheet (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017	Jun. 25, 2017	Dec. 25, 2016
Current assets:
Cash and cash equivalents	$ 25,719	$ 26,624	$ 22,345	$ 22,247	$ 15,563
Accounts receivable, net	62,973	65,137	64,644
Notes receivable, net	5,180	4,333	4,333
Income tax receivable		3,903	3,903
Inventories	27,109	30,620	30,620
Prepaid expenses	26,729	23,563	28,522
Other current assets	7,223	9,494	9,494
Assets held for sale	2,786	6,133	6,133
Total current assets	157,719	169,807	169,994
Property and equipment, net	227,722	234,331	234,331
Notes receivable, less current portion, net	15,648	15,568	15,568
Goodwill	85,064	86,892	86,892
Deferred income taxes, net	709	585	585
Other assets	71,309	47,276	48,183
Total assets	558,171	554,459	555,553
Current liabilities:
Accounts payable	33,307	29,845	32,006
Income and other taxes payable	8,904	10,561	10,561
Accrued expenses and other current liabilities	81,197	86,153	70,293
Deferred revenue current	2,426	2,400
Current portion of long-term debt	20,000	20,000	20,000
Total current liabilities	145,834	148,959	132,860
Deferred revenue	15,329	13,450	2,652
Long-term debt, less current portion, net	556,387	446,565	446,565
Deferred income taxes, net	5,140	6,082	12,546
Other long-term liabilities	78,515	60,146	60,146
Total liabilities	801,205	675,202	654,769
Redeemable noncontrolling interests	7,356	6,738	6,738
Stockholders’ (deficit):
Preferred stock ($0.01 par value per share; no shares issued)
Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018 and 44,221 at December 31, 2017)	443	442	442
Additional paid-in capital	188,026	184,785	184,785
Accumulated other comprehensive income (loss)	2,240	(2,117)	(2,117)
Retained earnings	285,460	270,724	292,251
Treasury stock (12,733 shares at July 1, 2018 and 10,290 shares at December 31, 2017, at cost)	(742,695)	(597,072)	(597,072)
Total stockholders’ (deficit), net of noncontrolling interests	(266,526)	(143,238)	(121,711)
Noncontrolling interests in subsidiaries	16,136	15,757	15,757
Total stockholders’ (deficit)	(250,390)	(127,481)	(105,954)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	$ 558,171	554,459	$ 555,553
Preferred stock, par value	$ 0.01		$ 0.01
Preferred stock, shares issued	0		0
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares issued	44,280		44,221
Treasury stock, shares	12,733		10,290
Accounting Standards Update 2014-09 | Total Adjustments
Current assets:
Cash and cash equivalents	$ (3,130)	4,279
Accounts receivable, net	(359)	493
Prepaid expenses	4,827	(4,959)
Total current assets	1,338	(187)
Other assets	907	(907)
Total assets	2,245	(1,094)
Current liabilities:
Accounts payable	1,493	(2,161)
Accrued expenses and other current liabilities	(15,457)	15,860
Deferred revenue current	(2,426)	2,400
Total current liabilities	(16,390)	16,099
Deferred revenue	(11,157)	10,798
Deferred income taxes, net	6,682	(6,464)
Total liabilities	(20,865)	20,433
Stockholders’ (deficit):
Retained earnings	23,091	(21,527)
Total stockholders’ (deficit), net of noncontrolling interests	23,091	(21,527)
Noncontrolling interests in subsidiaries	19
Total stockholders’ (deficit)	23,110	(21,527)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	2,245	$ (1,094)
Accounting Standards Update 2014-09 | Without Adoption of Topic 606
Current assets:
Cash and cash equivalents	22,589
Accounts receivable, net	62,614
Notes receivable, net	5,180
Inventories	27,109
Prepaid expenses	31,556
Other current assets	7,223
Assets held for sale	2,786
Total current assets	159,057
Property and equipment, net	227,722
Notes receivable, less current portion, net	15,648
Goodwill	85,064
Deferred income taxes, net	709
Other assets	72,216
Total assets	560,416
Current liabilities:
Accounts payable	34,800
Income and other taxes payable	8,904
Accrued expenses and other current liabilities	65,740
Current portion of long-term debt	20,000
Total current liabilities	129,444
Deferred revenue	4,172
Long-term debt, less current portion, net	556,387
Deferred income taxes, net	11,822
Other long-term liabilities	78,515
Total liabilities	780,340
Redeemable noncontrolling interests	7,356
Stockholders’ (deficit):
Common stock ($0.01 par value per share; issued 44,280 at July 1, 2018 and 44,221 at December 31, 2017)	443
Additional paid-in capital	188,026
Accumulated other comprehensive income (loss)	2,240
Retained earnings	308,551
Treasury stock (12,733 shares at July 1, 2018 and 10,290 shares at December 31, 2017, at cost)	(742,695)
Total stockholders’ (deficit), net of noncontrolling interests	(243,435)
Noncontrolling interests in subsidiaries	16,155
Total stockholders’ (deficit)	(227,280)
Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit)	$ 560,416

Adoption of ASU 2014-09, "Rev35

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" – Impact of Adoption for the Second Quarter on the Statement of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Revenues:
Total revenues	$ 407,959	$ 434,778	$ 835,328	$ 884,044
Costs and expenses:
General and administrative expenses	38,712	40,248	78,441	76,662
Depreciation and amortization	11,731	10,654	23,270	21,111
Total costs and expenses	380,470	397,561	780,726	803,146
Refranchising loss, net	(2,122)		(1,918)
Operating income	25,367	37,217	52,684	80,898
Net Interest expense	(5,662)	(1,759)	(10,617)	(3,569)
Income before income taxes	19,705	35,458	42,067	77,329
Income tax expense	7,040	10,476	12,022	22,448
Net income before attribution to noncontrolling interests	12,665	24,982	30,045	54,881
Income attributable to noncontrolling interests	(874)	(1,444)	(1,517)	(2,915)
Net income attributable to the Company	11,791	23,538	28,528	51,966
Calculation of income for earnings per share:
Net income attributable to the Company	11,791	23,538	28,528	51,966
Change in noncontrolling interest redemption value		662		1,182
Net income attributable to participating securities	(72)	(99)	(147)	(216)
Net income attributable to common shareholders	$ 11,719	$ 24,101	$ 28,381	$ 52,932
Basic earnings per common share	$ 0.37	$ 0.66	$ 0.87	$ 1.44
Diluted earnings per common share	$ 0.36	$ 0.65	$ 0.86	$ 1.42
Basic weighted average common shares outstanding	31,941	36,732	32,610	36,771
Diluted weighted average common shares outstanding	32,175	37,217	32,860	37,283
Domestic Company-owned restaurants
Revenues:
Total revenues	$ 181,379	$ 202,756	$ 371,621	$ 409,652
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	147,781	162,433	305,100	327,852
North America franchising
Revenues:
Total revenues	23,912	26,588	48,718	54,195
North America commissary
Revenues:
Total revenues	153,455	160,059	315,168	331,399
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	143,300	149,472	294,981	309,429
International
Revenues:
Total revenues	29,069	27,245	59,183	52,867
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	18,248	17,272	37,278	33,063
Other segment
Revenues:
Total revenues	20,144	18,130	40,638	35,931
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	20,698	$ 17,482	41,656	$ 35,029
Accounting Standards Update 2014-09 | Total Adjustments
Revenues:
Total revenues	(1,814)		(4,250)
Costs and expenses:
General and administrative expenses	34		538
Total costs and expenses	(3,189)		(6,110)
Operating income	1,375		1,860
Income before income taxes	1,375		1,860
Income tax expense	306		418
Net income before attribution to noncontrolling interests	1,069		1,442
Net income attributable to the Company	1,069		1,442
Calculation of income for earnings per share:
Net income attributable to the Company	1,069		1,442
Net income attributable to common shareholders	$ 1,069		$ 1,442
Basic earnings per common share	$ 0.03		$ 0.04
Diluted earnings per common share	$ 0.03		$ 0.04
Basic weighted average common shares outstanding	31,941		32,610
Diluted weighted average common shares outstanding	32,175		32,860
Accounting Standards Update 2014-09 | Total Adjustments | Domestic Company-owned restaurants
Revenues:
Total revenues	$ 812		$ 1,076
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	(272)		(338)
Accounting Standards Update 2014-09 | Total Adjustments | North America franchising
Revenues:
Total revenues	82		120
Accounting Standards Update 2014-09 | Total Adjustments | International
Revenues:
Total revenues	175		324
Accounting Standards Update 2014-09 | Total Adjustments | Other segment
Revenues:
Total revenues	(2,883)		(5,770)
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	(2,951)		(6,310)
Accounting Standards Update 2014-09 | Without Adoption of Topic 606
Revenues:
Total revenues	406,145		831,078
Costs and expenses:
General and administrative expenses	38,746		78,979
Depreciation and amortization	11,731		23,270
Total costs and expenses	377,281		774,616
Refranchising loss, net	(2,122)		(1,918)
Operating income	26,742		54,544
Net Interest expense	(5,662)		(10,617)
Income before income taxes	21,080		43,927
Income tax expense	7,346		12,440
Net income before attribution to noncontrolling interests	13,734		31,487
Income attributable to noncontrolling interests	(874)		(1,517)
Net income attributable to the Company	12,860		29,970
Calculation of income for earnings per share:
Net income attributable to the Company	12,860		29,970
Net income attributable to participating securities	(72)		(147)
Net income attributable to common shareholders	$ 12,788		$ 29,823
Basic earnings per common share	$ 0.40		$ 0.91
Diluted earnings per common share	$ 0.40		$ 0.91
Basic weighted average common shares outstanding	31,941		32,610
Diluted weighted average common shares outstanding	32,175		32,860
Accounting Standards Update 2014-09 | Without Adoption of Topic 606 | Domestic Company-owned restaurants
Revenues:
Total revenues	$ 182,191		$ 372,697
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	147,509		304,762
Accounting Standards Update 2014-09 | Without Adoption of Topic 606 | North America franchising
Revenues:
Total revenues	23,994		48,838
Accounting Standards Update 2014-09 | Without Adoption of Topic 606 | North America commissary
Revenues:
Total revenues	153,455		315,168
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	143,300		294,981
Accounting Standards Update 2014-09 | Without Adoption of Topic 606 | International
Revenues:
Total revenues	29,244		59,507
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	18,248		37,278
Accounting Standards Update 2014-09 | Without Adoption of Topic 606 | Other segment
Revenues:
Total revenues	17,261		34,868
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):	$ 17,747		$ 35,346

Adoption of ASU 2014-09, "Rev36

Adoption of ASU 2014-09, "Revenue from Contracts with Customers" – Transaction Price Allocated to Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Jan. 01, 2018
Performance Obligations by Period
Total deferred revenue	$ 33,555	$ 30,574
Franchise royalties and fees
Performance Obligations by Period
Less than 1 Year	2,426
1-2 Years	2,179
2-3 Years	1,948
3-4 Years	1,732
4-5 Years	1,503
Thereafter	3,795
Total deferred revenue	13,583
Area development fees
Performance Obligations by Period
Total deferred revenue	4,200
Customer loyalty program
Performance Obligations by Period
Total deferred revenue	$ 15,800	$ 14,724

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Revenue, Major Customer [Line Items]
Total revenues	$ 407,959	$ 434,778	$ 835,328	$ 884,044
Company-owned Restaurants
Revenue, Major Customer [Line Items]
Total revenues	184,162		377,858
Commissary Sales
Revenue, Major Customer [Line Items]
Total revenues	222,246		457,512
Franchise royalties and fees
Revenue, Major Customer [Line Items]
Total revenues	33,915		68,722
Other Sales
Revenue, Major Customer [Line Items]
Total revenues	27,795		56,432
Domestic Company-owned restaurants
Revenue, Major Customer [Line Items]
Total revenues	181,379	202,756	371,621	409,652
Domestic Company-owned restaurants | Company-owned Restaurants
Revenue, Major Customer [Line Items]
Total revenues	181,379		371,621
North America commissary
Revenue, Major Customer [Line Items]
Total revenues	153,455	160,059	315,168	331,399
North America commissary | Commissary Sales
Revenue, Major Customer [Line Items]
Total revenues	204,947		422,534
North America franchising
Revenue, Major Customer [Line Items]
Total revenues	23,912	26,588	48,718	54,195
North America franchising | Franchise royalties and fees
Revenue, Major Customer [Line Items]
Total revenues	24,928		50,753
International.
Revenue, Major Customer [Line Items]
Total revenues	34,652		70,184
International. | Company-owned Restaurants
Revenue, Major Customer [Line Items]
Total revenues	2,783		6,237
International. | Commissary Sales
Revenue, Major Customer [Line Items]
Total revenues	17,299		34,978
International. | Franchise royalties and fees
Revenue, Major Customer [Line Items]
Total revenues	8,987		17,969
International. | Other Sales
Revenue, Major Customer [Line Items]
Total revenues	5,656		11,143
All others
Revenue, Major Customer [Line Items]
Total revenues	14,561		29,637
All others | Other Sales
Revenue, Major Customer [Line Items]
Total revenues	22,139		45,289
Elimination
Revenue, Major Customer [Line Items]
Total revenues	(60,159)	(64,105)	(125,196)	(131,694)
Elimination | North America commissary
Revenue, Major Customer [Line Items]
Total revenues	(51,492)	(59,202)	(107,366)	(120,938)
Elimination | North America franchising
Revenue, Major Customer [Line Items]
Total revenues	(1,016)	$ (751)	(2,035)	$ (1,515)
Elimination | International.
Revenue, Major Customer [Line Items]
Total revenues	(73)		(143)
Elimination | All others
Revenue, Major Customer [Line Items]
Total revenues	$ (7,578)		$ (15,652)

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Jan. 01, 2018
Revenue, Major Customer [Line Items]
Revenue recognized related to deferred revenue and customer loyalty program	$ 3,100	$ 7,000
Contract liabilities	33,555	33,555	$ 30,574
Change		2,981
Deferred revenue.
Revenue, Major Customer [Line Items]
Contract liabilities	17,755	17,755	15,850
Change		1,905
Customer loyalty program
Revenue, Major Customer [Line Items]
Contract liabilities	$ 15,800	15,800	$ 14,724
Change		$ 1,076

Stockholders' Equity _ (Defic39

Stockholders' Equity / (Deficit) - Shares Authorized and Outstanding (Details) - shares shares in Thousands	Jul. 01, 2018	Dec. 31, 2017
Stockholders' Equity / (Deficit)
Authorized shares of preferred stock	5,000
Authorized shares of common stock	100,000
Outstanding shares of common stock , net of repurchased stock	31,500	33,900
Preferred shares issued	0	0
Preferred shares outstanding	0	0

Stockholders' Equity _ (Defic40

Stockholders' Equity / (Deficit) - Share Repurchase Program (Details) - USD ($) $ in Thousands	May 14, 2018	Mar. 06, 2018	Mar. 01, 2018	May 14, 2018	Jul. 01, 2018	Jun. 25, 2017
Share repurchase program
Cash payment for repurchase of common stock					$ 148,440	$ 33,968
Common stock repurchase program
Share repurchase program
Stock repurchase program, authorized amount					$ 2,075,000
ASR Agreement
Share repurchase program
Stock repurchase program, authorized amount			$ 100,000
Cash payment for repurchase of common stock			$ 100,000
Stock repurchased during period, shares	400,000	1,300,000		1,700,000
Stock repurchased during period, value		$ 78,000		$ 100,000
Stock repurchase program, remaining authorized amount	$ 22,000			$ 22,000

Stockholders' Equity _ (Defic41

Stockholders' Equity / (Deficit) - Cash Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 24, 2018	Aug. 13, 2018	Aug. 01, 2018	Jul. 01, 2018	Jun. 25, 2017
Cash Dividend
Dividends paid				$ 14,762	$ 14,703
Quarterly dividend paid per common share (in dollars per share)				$ 0.45
Subsequent event
Cash Dividend
Quarterly dividend, date of declaration			Aug. 1, 2018
Quarterly dividend declared, per share (in dollars per share)			$ 0.225
Quarterly dividend declared			$ 7,200
Quarterly dividend, date of distribution	Aug. 24, 2018
Quarterly dividend, date of record		Aug. 13, 2018

Stockholders' Equity _ (Defic42

Stockholders' Equity / (Deficit) - Stockholder Rights Plan (Details) - $ / shares	Jul. 22, 2018	Jul. 01, 2018	Dec. 31, 2017
Preferred stock, par value		$ 0.01	$ 0.01
Subsequent event | Rights
Ownership trigger threshold	15.00%
Number of preferred share purchase rights granted for each outstanding share of common stock	1
Exercise price per right	$ 250
Ratio of market price to exercise price if beneficial ownership is acquired without prior board approval	2
Subsequent event | Rights | Series A Junior Participating Preferred Stock
Number of shares of stock available to purchase per right	0.001
Preferred stock, par value	$ 0.01
Subsequent event | Rights | John H. Schnatter with his affiliates and family members
Ownership trigger threshold	31.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Basic earnings per common share:
Net income attributable to the Company	$ 11,791	$ 23,538	$ 28,528	$ 51,966
Change in noncontrolling interest redemption value		662		1,182
Net income attributable to participating securities	(72)	(99)	(147)	(216)
Net income attributable to common shareholders	$ 11,719	$ 24,101	$ 28,381	$ 52,932
Weighted average common shares outstanding	31,941	36,732	32,610	36,771
Basic earnings per common share	$ 0.37	$ 0.66	$ 0.87	$ 1.44
Diluted earnings per common share:
Net income attributable to common shareholders	$ 11,719	$ 24,101	$ 28,381	$ 52,932
Weighted average common shares outstanding	31,941	36,732	32,610	36,771
Dilutive effect of outstanding equity awards	234	485	250	512
Diluted weighted average common shares outstanding	32,175	37,217	32,860	37,283
Diluted earnings per common share	$ 0.36	$ 0.65	$ 0.86	$ 1.42
Weighted average antidilutive awards excluded from computation of earnings per share	1,257	325	1,143	215

Divestitures (Details)

Divestitures (Details)	Jul. 02, 2018USD ($)restaurant	Jun. 15, 2018USD ($)restaurant	Jul. 01, 2018USD ($)lease	Apr. 01, 2018USD ($)restaurant	Jul. 01, 2018USD ($)lease
Proceeds from divestitures of restaurants					$ 3,690,000
Refranchising loss, net			$ 2,122,000		$ 1,918,000
Stores in Denver, Colorado market
Number of restaurants divested | restaurant				31
Ownership share in stores refranchised (as a percent)				60.00%
Total consideration for asset sale of restaurants				$ 4,800,000
Proceeds from divestitures of restaurants				3,700,000
Consideration for asset sale, notes financed by Papa John's				1,100,000
Goodwill written off				$ 700,000
Number of domestic leases for which the Company is contingently liable | lease			31		31
Estimated maximum amount of undiscounted payments in the event of nonpayment by primary lessees			$ 3,600,000		$ 3,600,000
Stores in Beijing and Tianjin, China
Number of restaurants divested | restaurant		34
Refranchising loss, net		$ 1,900,000
Reversal of accumulated other comprehensive income related to foreign currency translation		1,300,000
Additional tax expense associated with divestiture of restaurants		$ 2,400,000
Stores in Minneapolis, Minnesota market | Subsequent event
Number of restaurants divested | restaurant	31
Ownership share in stores refranchised (as a percent)	70.00%
Total consideration for asset sale of restaurants	$ 3,750,000

Divestitures - Assets Held for

Divestitures - Assets Held for Sale in Minneapolis, Minnesota Market (Details) - Stores in Minneapolis, Minnesota market $ in Thousands	Jul. 01, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property and equipment	$ 1,936
Goodwill	678
Inventory	153
Other	19
Assets held for sale	$ 2,786

Debt - Schedule of Long Term De

Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017
Debt
Outstanding debt	$ 579,400		$ 470,000
Unamortized debt issuance costs	(3,013)		(3,435)
Current portion of long-term debt	(20,000)	$ (20,000)	(20,000)
Total long-term debt, less current portion, net	$ 556,387	$ 446,565	$ 446,565

Debt - Credit Agreements (Detai

Debt - Credit Agreements (Details) $ in Thousands	Aug. 30, 2017USD ($)item	Jul. 01, 2018USD ($)	Dec. 31, 2017USD ($)
Debt
Outstanding debt		$ 579,400	$ 470,000
Debt issuance costs		3,013	$ 3,435
Credit Agreement
Debt
Outstanding debt		579,400
Additional amount that company has option to increase borrowing capacity	$ 300,000
Line of credit facility, remaining availability		371,800
Debt issuance costs	$ 3,200
Number of quarters in interest margin period | item	4
Credit Agreement | LIBOR | Minimum
Debt
Interest margin rate on debt	0.75%
Credit Agreement | LIBOR | Maximum
Debt
Interest margin rate on debt	2.00%
Credit Agreement | Base rate | Minimum
Debt
Interest margin rate on debt	0.00%
Credit Agreement | Base rate | Maximum
Debt
Interest margin rate on debt	1.00%
Revolving Facility | Credit Agreement
Debt
Outstanding debt		194,400
Line of credit facility, maximum borrowing capacity	$ 600,000
Line of credit facility, maximum borrowing capacity of foreign currencies	$ 35,000
Revolving Facility | Credit Agreement | Minimum
Debt
Percentage of commitment fee on unused credit facility	0.15%
Revolving Facility | Credit Agreement | Maximum
Debt
Percentage of commitment fee on unused credit facility	0.30%
Term Loan Facility | Credit Agreement
Debt
Outstanding debt	$ 400,000	$ 385,000
Quarterly amortization payment	$ 5,000

Debt - Derivatives (Details)

Debt - Derivatives (Details) $ in Millions	Jul. 01, 2018USD ($)
Interest rate swap, April 2018, 2.33% fixed
Interest rate swaps
Interest rate swap agreement, notional amount	$ 55
Interest rate swap agreement, fixed interest rate	2.33%
Interest rate swap, April 2018, 2.36% fixed
Interest rate swaps
Interest rate swap agreement, notional amount	$ 35
Interest rate swap agreement, fixed interest rate	2.36%
Interest rate swap, April 2018, 2.34% fixed
Interest rate swaps
Interest rate swap agreement, notional amount	$ 35
Interest rate swap agreement, fixed interest rate	2.34%
Interest rate swap, January 2018, 1.99% fixed, $100 million notional amount
Interest rate swaps
Interest rate swap agreement, notional amount	$ 100
Interest rate swap agreement, fixed interest rate	1.99%
Interest rate swap, January 2018, 1.99% fixed, $75 million notional amount
Interest rate swaps
Interest rate swap agreement, notional amount	$ 75
Interest rate swap agreement, fixed interest rate	1.99%
Interest rate swap, January 2018, 2.00% fixed, $75 million notional amount
Interest rate swaps
Interest rate swap agreement, notional amount	$ 75
Interest rate swap agreement, fixed interest rate	2.00%
Interest rate swap, January 2018, 1.99% fixed, $25 million notional amount
Interest rate swaps
Interest rate swap agreement, notional amount	$ 25
Interest rate swap agreement, fixed interest rate	1.99%

Debt - Interest Rate Swaps (Det

Debt - Interest Rate Swaps (Details) $ in Thousands	Jul. 01, 2018USD ($)item	Dec. 31, 2017USD ($)
Not designated as a hedge
Debt and Credit Arrangements
Number of derivatives held | item	0
Interest rate swap | Other current and long-term assets
Debt and Credit Arrangements
Derivatives designated as hedging instruments, fair value | $	$ 10,203	$ 651

Debt - Effect of Derivatives on

Debt - Effect of Derivatives on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Debt and Credit Arrangements
Weighted average interest rates on debt, including impact of interest rate swaps	3.60%	2.30%	3.60%	2.30%
Interest paid, including payments made or received under the swaps	$ 5,800	$ 2,100	$ 10,700	$ 3,900
Interest rate swap
Debt and Credit Arrangements
Interest rate swap assets	10,200		10,200
Interest expense | Interest rate swap
Debt and Credit Arrangements
Amount of Gain or (Loss) Recognized in AOCI/AOCL on Derivative	2,207	(1,170)	7,380	(1,465)
Amount of Gain or (Loss) Reclassified from AOCI/AOCL into Income	(89)	(126)	(197)	(324)
Total Interest Expense on Consolidated Statements of Income	$ (5,911)	$ (1,894)	$ (11,131)	$ (3,840)
Estimate of period of time over which portion of derivative liability would be reclassified into earnings			12 months
Portion of derivative asset that would be reclassified into earnings			$ 2,400

Segment Information - Concentra

Segment Information - Concentration (Details)	Jul. 01, 2018entity
Consolidated revenues
Major customers disclosures
Concentration risk, number	0

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information, by Segment (Details)	3 Months Ended		6 Months Ended
	Jul. 01, 2018USD ($)	Jun. 25, 2017USD ($)	Jul. 01, 2018USD ($)entity	Jun. 25, 2017USD ($)	Jan. 02, 2018USD ($)	Dec. 31, 2017USD ($)
Segment Information
Reportable segments, number | entity			5
Revenues	$ 407,959,000	$ 434,778,000	$ 835,328,000	$ 884,044,000
Income (loss) before income taxes	19,705,000	35,458,000	42,067,000	77,329,000
Accumulated depreciation and amortization	(418,205,000)		(418,205,000)
Net property and equipment	227,722,000		227,722,000		$ 234,331,000	$ 234,331,000
Domestic Company-owned restaurants
Segment Information
Revenues	181,379,000	202,756,000	371,621,000	409,652,000
North America commissary
Segment Information
Revenues	153,455,000	160,059,000	315,168,000	331,399,000
North America franchising
Segment Information
Revenues	23,912,000	26,588,000	48,718,000	54,195,000
International
Segment Information
Revenues	29,069,000	27,245,000	59,183,000	52,867,000
Other segment
Segment Information
Revenues	20,144,000	18,130,000	40,638,000	35,931,000
Operating segments
Segment Information
Revenues	407,959,000	434,778,000	835,328,000	884,044,000
Operating segments | Domestic Company-owned restaurants
Segment Information
Revenues	181,379,000	202,756,000	371,621,000	409,652,000
Income (loss) before income taxes	8,304,000	15,550,000	15,533,000	31,037,000
Property and equipment, gross	229,887,000		229,887,000
Operating segments | North America commissary
Segment Information
Revenues	153,455,000	160,059,000	315,168,000	331,399,000
Income (loss) before income taxes	8,730,000	12,088,000	17,340,000	24,332,000
Property and equipment, gross	138,452,000		138,452,000
Transfer of expenses between unallocated corporate and segments	1,900,000		4,200,000
Operating segments | North America franchising
Segment Information
Revenues	23,912,000	26,588,000	48,718,000	54,195,000
Income (loss) before income taxes	21,380,000	23,999,000	43,739,000	48,874,000
Operating segments | International
Segment Information
Revenues	34,652,000	30,230,000	70,184,000	58,748,000
Income (loss) before income taxes	2,278,000	3,265,000	5,815,000	7,609,000
Property and equipment, gross	17,064,000		17,064,000
Operating segments | Other segment
Segment Information
Revenues	14,561,000	15,145,000	29,637,000	30,050,000
Income (loss) before income taxes	(1,728,000)	905,000	(2,638,000)	1,365,000
Property and equipment, gross	65,245,000		65,245,000
Transfer of expenses between unallocated corporate and segments	900,000		1,800,000
Elimination
Segment Information
Revenues	(60,159,000)	(64,105,000)	(125,196,000)	(131,694,000)
Income (loss) before income taxes	65,000	(1,263,000)	(268,000)	(421,000)
Elimination | North America commissary
Segment Information
Revenues	(51,492,000)	(59,202,000)	(107,366,000)	(120,938,000)
Elimination | North America franchising
Segment Information
Revenues	(1,016,000)	(751,000)	(2,035,000)	(1,515,000)
Elimination | International
Segment Information
Revenues	(73,000)	(68,000)	(143,000)	(131,000)
Elimination | Other segment
Segment Information
Revenues	(7,578,000)	(4,084,000)	(15,652,000)	(9,110,000)
Unallocated corporate
Segment Information
Income (loss) before income taxes	(19,324,000)	$ (19,086,000)	(37,454,000)	$ (35,467,000)
Property and equipment, gross	195,279,000		195,279,000
Transfer of expenses between unallocated corporate and segments	$ (3,400,000)		$ (7,200,000)

Reclassifications of Prior Ye53

Reclassifications of Prior Year Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Revenues:
Total revenues	$ 407,959	$ 434,778	$ 835,328	$ 884,044
Costs and expenses:
General and administrative expenses	38,712	40,248	78,441	76,662
North America commissary
Revenues:
Total revenues	153,455	160,059	315,168	331,399
Costs and expenses:
Operating costs (excluding depreciation and amortization)	143,300	149,472	294,981	309,429
International
Revenues:
Total revenues	29,069	27,245	59,183	52,867
Costs and expenses:
Operating costs (excluding depreciation and amortization)	18,248	17,272	37,278	33,063
Other segment
Revenues:
Total revenues	20,144	18,130	40,638	35,931
Costs and expenses:
Operating costs (excluding depreciation and amortization)	$ 20,698	17,482	$ 41,656	35,029
As reported
Costs and expenses:
General and administrative expenses		42,003		80,010
As reported | North America commissary
Revenues:
Total revenues		175,204		361,449
Costs and expenses:
Operating costs (excluding depreciation and amortization)		162,989		336,701
As reported | International
Revenues:
Total revenues		30,230		58,748
Costs and expenses:
Operating costs (excluding depreciation and amortization)		19,482		37,472
Reclassifications
Costs and expenses:
General and administrative expenses		(1,755)		(3,348)
Reclassifications | North America commissary
Revenues:
Total revenues		(15,145)		(30,050)
Costs and expenses:
Operating costs (excluding depreciation and amortization)		(13,517)		(27,272)
Reclassifications | International
Revenues:
Total revenues		(2,985)		(5,881)
Costs and expenses:
Operating costs (excluding depreciation and amortization)		(2,210)		(4,409)
Reclassifications | Other segment
Revenues:
Total revenues		18,130		35,931
Costs and expenses:
Operating costs (excluding depreciation and amortization)		$ 17,482		$ 35,029