Panera Bread 2004 Annual Report Download - page 47

million to fixed assets and $0.4 million to goodwill. In October 2004, the Company completed the purchase of the remaining bakery-
cafe for a cash purchase price of approximately $0.2 million.
On January 9, 2003, the Company purchased from a franchisee substantially all of the assets of four operating bakery-cafes as well
as the area development rights for the Louisville and Lexington, Kentucky markets for a purchase price of $5.5 million. Of the
purchase price, $5.0 million was paid in cash at the acquisition date and $0.5 million was paid, with interest, in cash six months from
the acquisition date. The acquisition price was paid with cash on hand. The Consolidated Statements of Operations include the results
of operations of the four operating bakery-cafes from the date of acquisition. The pro forma impact of the acquisition on prior periods
is not presented as the impact is not material to reported results. The Company allocated the purchase price to the assets acquired in
the acquisition at their estimated fair values with the remainder allocated to tax deductible goodwill as follows: $1.7 million to fixed
assets, $0.1 million to inventories, and $3.7 million to goodwill.
On January 22, 2002, the Company purchased from a franchisee substantially all of the assets of three operating bakery-cafes and
one bakery-cafe under construction as well as the area development rights for the Jacksonville, Florida market for a net purchase price
of $3.3 million. The acquisition price was paid with cash on hand. The Consolidated Statements of Operations include the results of
operations of the three operating bakery-cafes from the date of acquisition. The pro forma impact of the acquisition on prior periods is
not presented as the impact is not material to reported results. The Company allocated the purchase price to the assets acquired and
liabilities assumed in the acquisition at their estimated fair values with the remainder allocated to tax deductible goodwill as follows:
$0.1 million to inventories and other current assets, $2.1 million to fixed assets, $0.3 million to liabilities, and $1.4 million to
goodwill.
5. Inventories
Inventories consist of the following (in thousands):
December 25,
2004
December 27,
2003
Food:
Fresh dough facilities:
Raw materials........................................................................................................................................... $ 1,733 $ 1,529
Finished goods ......................................................................................................................................... 362 256
Bakery-cafes:
Finished goods ......................................................................................................................................... 2,520 2,040
Paper goods .................................................................................................................................................. 595 377
Retail merchandise ....................................................................................................................................... 188 148
$ 5,398 $ 4,350
6. Property and Equipment
Major classes of property and equipment consist of the following (in thousands):
December 25,
2004
(as restated)
December 27,
2003
Leasehold improvements.............................................................................................................................. $ 131,059 $ 96,577
Land and land improvements ....................................................................................................................... 712 —
Machinery and equipment ............................................................................................................................ 90,034 67,282
Furniture and fixtures ................................................................................................................................... 21,514 17,337
Signage ......................................................................................................................................................... 5,282 3,932
Smallwares ................................................................................................................................................... 4,536 3,158
Construction in progress............................................................................................................................... 36,464 21,349
289,601 209,635
Less: accumulated depreciation.................................................................................................................... 87,876 63,273
Property and equipment, net......................................................................................................................... $ 201,725 $ 146,362
The Company recorded depreciation expense related to these assets of $25.3 million, $18.3 million, and $13.8 million in 2004,
2003, and 2002, respectively.
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