Panera Bread 2003 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2003 Panera Bread annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
7. Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 27, December 28,
2003 2002
Compensation and employment related taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,260 $ 6,875
Capital expendituresÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,196 4,421
Rent ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,828 2,206
Advertising ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 2,037
Unredeemed gift certiÑcates and gift cards ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,113 1,857
Insurance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,112 1,412
Taxes, other than income tax ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,410 1,393
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8,633 4,734
$35,552 $24,935
8. Line of Credit
On December 19, 2003, the Company entered into a $10.0 million unsecured revolving line of credit
(revolver). The revolver extends to December 19, 2006 and has an interest rate of LIBOR plus 0.75% to 1.5%
depending on the Company's leverage ratio (approximately 1.79% to 2.5% at December 27, 2003). The
revolver contains restrictions relating to future indebtedness, liens, investments, distributions, mergers,
acquisition, or sale of assets and certain leasing transactions. The revolver also requires the maintenance of
certain Ñnancial ratios and covenants. As of December 27, 2003, the Company was in compliance with all debt
covenants. There were no outstanding borrowings under the revolver at that time at December 27, 2003.
The revolver replaced the Company's previous $10.0 million unsecured revolving line of credit (old
revolver). The old revolver had an interest rate of LIBOR plus 1% (approximately 2.4% and 2.9% at
December 28, 2002 and December 29, 2001, respectively). The old revolver contained restrictions relating to
future indebtedness, liens, investments, distributions, mergers, acquisition, or sale of assets and certain leasing
transactions. The old revolver also required the maintenance of certain Ñnancial ratios and covenants and
contained a commitment fee of 0.225% of the unused portion of the revolving line of credit. There were no
outstanding borrowings under the old revolver at December 28, 2002. At December 28, 2002, the Company
had $9.5 million available under the old revolver with $0.5 million utilized by outstanding letters of credit.
9. Commitments and Contingent Liabilities
The Company is obligated under non-cancelable operating leases for its trucks, administrative oÇces,
fresh dough facilities, and bakery-cafes. Lease terms for its trucks are generally for Ñve to seven years. Lease
terms for its administrative oÇces, fresh dough facilities, and bakery-cafes are generally for ten years with
renewal options at certain locations and generally require the Company to pay a proportionate share of real
estate taxes, insurance, common area, and other operating costs. Many bakery-cafe leases provide for
contingent rental (i.e., percentage rent) payments based on sales in excess of speciÑed amounts.
42