Einstein Bros 2005 Annual Report Download - page 40

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http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
8. DEBT ISSUANCE COSTS AND OTHER ASSETS
Debt issuance costs and other assets consist of the following:
January 3, December 28,
2006 2004
(in thousands of dollars)
Security deposits
$ 993
$ 1,296
Debt issuance costs, net of amortization(a)
4,110
5,957
Debt issuance costs(b)
81
—
Total debt issue costs and other assets
$ 5,184
$ 7,253
(a) This asset represents costs incurred related to our $160 Million Notes and AmSouth Revolver.
(b) This asset represents costs incurred as of January 3, 2006 related to the issuance of $170 million in new term loans and $15 million new
revolving credit facility in February 2006 as further described in Note 27. Upon closing of our new debt facility, we began amortizing these
costs and the debt issuance costs related to our $160 Million Notes and AmSouth Revolver were written-off.
Direct costs incurred for the issuance of debt under the $160 Million Notes have been capitalized and amortized using the effective interest
method over the term of the debt. Debt issuance costs related to the AmSouth Revolver have been capitalized and amortized using the straight-line
method over the term of the debt. In the event that the debt is retired prior to the maturity date, debt issuance costs will be expensed in the period
that the debt is retired. The amortization of debt issuance costs is included in interest expense in the consolidated statements of operations.
Amortization expense of approximately $1.8 million, $1.8 million and $3.1 million was recorded for the fiscal years ended 2005, 2004 and 2003,
respectively.
9. ACCRUED EXPENSES
Accrued expenses consist of the following:
January 3, December 28,
2006 2004
Payroll and related bonuses
$ 13,064
$ 12,450
Interest
181
10,249
Integration and reorganization
—
21
Gift cards
2,745
2,476
Other
8,799
9,640
Total accrued expenses
$ 24,789
$ 34,836
52
NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
10. SENIOR NOTES AND OTHER LONG-TERM DEBT
Senior notes and other long-term debt consist of the following:
January 3, December 28,
2006 2004
$160 Million Indenture
$ 160,000
$ 160,000
AmSouth Revolver
—
15
New Jersey Economic Development Authority Note Payable
840
1,120
160,840
161,135
Less current portion of debt
280
295
Long-term debt
$ 160,560
$ 160,840
$160 Million Notes
On July 8, 2003, we issued $160 million of 13% senior secured notes maturing on July 1, 2008 (“$160 Million Notes”) in a private placement.