Einstein Bros 2002 Annual Report Download - page 80

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http://www.sec.gov/Archives/edgar/data/949373/000104746903027186/a2116520z10-ka.htm[9/11/2014 10:14:22 AM]
reclassified to permanent equity, as denoted on the consolidated statement of changes in stockholders' equity for the year ended December 31,
2002.
15. Reorganization and Integration
During the quarter ended October 1, 2002, the Company implemented a plan to shut down its dough manufacturing facilities on the East Coast.
During the quarter ended December 31, 2002, the Company implemented a plan to terminate the lease obligation for the Eatontown location. As
discussed in Note 1—Nature of Business and Organization, the Company vacated the Eatontown location in the last week of 2002. When initiated,
the restructuring plans were expected to take approximately one year to complete, subject to the Company's ability to sublease the Eatontown
facility. The Company recorded a $4.8 million charge associated with these restructuring plans.
F-49
Approximately $2.2 million of this charge represented a write-off of the equipment and leasehold improvements no longer usable by the Company.
The following table displays the activity and balances of the 2002 restructuring accrual account from inception to December 31, 2002:
Category
Initial Accrual
Application of
costs against
accrual
Underaccrual
Additional
Expense
Overaccrual
Expense
Reduction
Balance as of
December 31,
2002
(amounts in thousands)
Plant lease termination $ 1,447 $ — $ — $ — $ 1,447
Severance costs 787 (662) — — 125
Contract termination and other 300 (168) — — 132
Total $ 2,534 $ (830) $ — $ — $ 1,704
During the quarter ended July 3, 2001, the Company implemented a plan to consolidate the two dough manufacturing facilities on the West
Coast, eliminate duplicative labor lines of assembly, terminate certain lease obligations inclusive of several company-operated locations. When
initiated, the restructuring plan was expected to take approximately one year to complete. The Company recorded a $4.4 million charge associated
with this restructuring plan. Approximately $1.0 million of this charge represented a write-off of the equipment and leasehold improvements no
longer usable by the Company.
The following tables display the 2001 and 2002 activity and balances of the 2001 restructuring accrual account:
Category
Balance as of
January 1,
2002
Application of
costs against
accrual
Underaccrual
Additional
Expense
Overaccrual
Expense
Reduction
Balance as of
December 31,
2002
(amounts in thousands)
Plant lease termination $ 379 $ (68) $ — $ — $ 311
Severance costs 151 (229) 85 — 7
Contract termination and other 58 (94) 43 — 7
Store lease termination 2,348 (907) 445 (1,147) 739
Total $ 2,936 $ (1,298) $ 573 $ (1,147) $ 1,064
Category
Initial Accrual
Application of
costs against
accrual
Underaccrual
Additional
Expense
Overaccrual
Expense
Reduction
Balance as of
January 1,
2002
(amounts in thousands)
Plant lease termination $ 379 $ — $ — $ — $ 379
Severance costs 151 — — — 151
Contract termination and other 233 (204) 42 (13) 58
Store lease termination 2,629 (293) 12 — 2,348
Total $ 3,392 $ (497) $ 54 $ (13) $ 2,936