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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
Goodwill
1,096
—
Accrued expense and other current liabilities — 34
Total purchase price $ 1,752 $ 985
Amounts withheld (94) —
Net cash paid at closing $ 1,658 $ 985
Payments of amounts withheld from current and prior
acquisitions 523 —
Net cash paid towards acquisitions 2,181 985
67
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The restaurants acquired in fiscal 2013 contributed $0.4 million in net operating revenue for the fiscal year ended December 31, 2013. Pro
forma results of operations have not been presented, as the impact on the consolidated financial results would not have been material. Goodwill of
$1.1 million arising from the Company’ s fiscal 2012 acquisitions consists largely of the synergies and economies of scale expected from
combining the acquired operations with the Company. All of the goodwill recognized is expected to be deductible for income tax purposes.
Certain amounts may be withheld by the Company at the closing of each transaction for specified periods of time. These withheld amounts
are applied to any invoices that relate to the seller after the closing date of the transaction. The Company will then pay the difference to the seller at
an agreed upon date. There were no remaining amounts as of January 1, 2013 and December 31, 2013.
The Company treats acquisition related costs as expenses in the periods in which they are incurred. The Company recorded $0.1 million and
$20,000 in costs related to acquisitions for the fiscal years ended January 1, 2013 and December 31, 2013, respectively. These amounts are
included in other operating (income) expenses, net on the accompanying consolidated statement of income and comprehensive income.
During the second quarter of 2012, the Company adjusted its assignment of costs related to a prior year acquisition for changes to its original
estimates of the fair value of capital assets that were acquired. These changes are the result of additional information obtained since the filing of the
Company’ s Form 10-K for the fiscal year ended January 3, 2012. The adjustment to property, plant and equipment of $0.1 million did not result in
a material change to previously reported amounts. Goodwill increased by $0.1 million as a result of the decrease in the fair value of the property,
plant and equipment.
4. INVENTORIES
Inventories consist of the following as of:
January 1,
2013
December 31,
2013
(in thousands)
Finished goods $ 4,427 $ 4,798
Raw materials 955 836
Total inventories $ 5,382 $ 5,634
5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following as of:
January 1,
2013
December 31,
2013
(in thousands)
Leasehold improvements $121,001 $ 129,183
Store and manufacturing equipment 94,389 99,501
Furniture and fixtures 1,097 1,095
Office and computer equipment 35,983 37,168
Vehicles 4 4
Property, plant and equipment 252,474 266,951
Less accumulated depreciation 189,461 202,722
Property, plant and equipment, net $ 63,013 $ 64,229