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10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
December 31, 2013, minimum sublease rentals to be received in the future under non-cancelable subleases were $1.6 million. The Company’ s
sublease income was $0.5 million, $0.5 million and $0.6 million for fiscal years 2011, 2012 and 2013, respectively.
82
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Purchase Commitments
The Company has obligations with certain of its major suppliers of raw materials. From time to time, the Company will commit to the
purchase price of certain commodities that are related to the ingredients used for the production of its bagels, cream cheese and coffee. The
Company reviews the relationship of these purchase commitments to its business plan and general market trends. The total of the Company’ s
future purchase obligations as of December 31, 2013 was approximately $26.7 million.
Litigation
The Company is subject to claims and legal actions in the ordinary course of business, including claims by or against franchisees, licensees
and employees or former employees and/or contract disputes. The Company does not believe any currently pending or threatened matter would
have a material adverse effect on its business, results of operations or financial condition.
18. RESTRUCTURINGS
In fiscal 2010, the Company’ s management approved a plan to restructure the organization to align with its franchise growth model. This
restructuring included eliminating certain redundant positions and reducing headcount. The Company incurred $0.2 million related to this
restructuring for fiscal 2011.
In fiscal 2011, the Company committed to a plan to close all five of its commissaries. The Grove City, Ohio commissary closed during the
fourth quarter of 2011. The remaining four commissaries closed by the end of the first quarter of 2012. The Company recorded restructuring
charges of $0.7 million during fiscal 2011 and $0.5 million during fiscal 2012 related to this restructuring.
Also in fiscal 2011, the Company eliminated other redundant positions resulting in an additional $0.2 million of restructuring charges for
fiscal 2011.
All restructuring costs are included in restructuring expenses on the consolidated statements of income and comprehensive income. It is the
Company’ s policy to record all restructuring costs within the corporate support segment.
The Company has no remaining restructuring liabilities as of December 31, 2013.
19. SEGMENTS
The Company’ s senior management team manages the business and allocates resources via a combination of restaurant sales reports and
gross profit information related to the Company’ s three sources of revenue, which are presented in their entirety within the consolidated statements
of income and comprehensive income.
83
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Financial results by reportable segment for fiscal years 2011, 2012 and 2013 are as follows:
Segments
Fiscal 2011:
Company-owned
restaurants
Manufacturing and
commissary
Franchise and
license
Corporate
support Consolidated
(in thousands)
Revenues:
Company-owned restaurant sales $ 378,723 $— $— $— $ 378,723