Einstein Bros 2002 Annual Report Download - page 68

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http://www.sec.gov/Archives/edgar/data/949373/000104746903027186/a2116520z10-ka.htm[9/11/2014 10:14:22 AM]
As Restated
December 31,
2002
January 1,
2002
December 31,
2000
(amounts in thousands)
Leasehold improvements $ 51,026 $ 50,448 $ 3,735
Store/factory equipment 49,781 51,220 3,407
Furniture & fixtures 1,799 2,189 445
Office and computer equipment 9,251 9,576 1,942
111,857 113,433 9,529
Less accumulated depreciation (30,603) (12,316) (3,027)
$ 81,254 $ 101,117 $ 6,502
F-33
Depreciation expense totaled approximately $22,808,000, $9,568,000 and $1,517,000 for the years ended December 31, 2002, January 1, 2002
and December 31, 2000, respectively.
6. Notes Receivable
The Company has issued promissory notes to franchisees to facilitate their construction of stores and provide other initial and ongoing
operating cash flows. The notes are payable with interest thereon at rates ranging from 6-10% per annum and are generally to be paid in full
simultaneously upon the closing of a subsequent financing by the franchisee. The notes have terms expiring through November 2004. Substantially
all of the assets of the franchisees' stores are pledged as collateral for the notes. Allowance for doubtful notes receivable was $2,618,000,
$2,477,000 and $1,897,000 as of December 31, 2002, January 1, 2002 and December 31, 2000 respectively.
7. Debt Issuance Costs and Other Assets
Debt issuance costs and other assets consist of the following:
As Restated
December 31,
2002
January 1,
2002
December 31,
2000
(amounts in thousands)
Security deposits $ 265 $ 250 $ 424
Deferred acquisition costs — — 701
Debt issuance costs 566 2,234 —
Other 695 753 519
$ 1,526 $ 3,237 $ 1,644
F-34
8. Long-Term Debt
Long-term debt consists of the following:
As Restated
December 31,
2002
January 1,
2002
December 31,
2000