Panera Bread 2006 Annual Report Download - page 33

current investments in government securities of $16.2 million. We have experienced no liquidity difficulties and
have historically been able to finance our operations through internally generated cash flow.
Cash provided by (used in):
December 26,
2006
December 27,
2005
December 25,
2004
For the Fiscal Year Ended
Operating Activities............................ $104,895 $ 110,628 $ 84,284
Investing Activities ............................ $(90,917) $(129,640) $(102,291)
Financing Activities............................ $ 13,668 $ 13,824 $ 5,244
Operating Activities
Funds provided by operating activities for the fiscal years ended December 26, 2006, December 27, 2005, and
December 25, 2004 were $104.9 million, $110.6 million, and $84.3 million, respectively. Cash flows from
operating activities for the fiscal year ended December 26, 2006 primarily included net income, depreciation and
amortization, stock based compensation, and an increase in accrued expenses, deferred rent and other long-term
liabilities, partially offset by an increase in deferred income taxes, trade and other accounts receivable, and prepaid
expenses. Cash flows from operating activities for the fiscal year ended December 27, 2005 and December 25, 2004
primarily resulted from net income, depreciation and amortization, tax benefit from exercise of stock options, and
an increase in deferred rent and accrued expenses, partially offset by increased trade and other receivables.
Investing Activities
Total capital expenditures for the fiscal year ended December 26, 2006 were $109.3 million and were primarily
related to the opening of 70 Company-owned bakery-cafes and two fresh dough facilities in 2006, costs incurred on
Company-owned bakery-cafes to be opened in the first and second quarter of 2007, and the maintaining or
remodeling of existing bakery-cafes and fresh dough facilities. Additionally, we acquired 13 cafes and one cafe
under construction from two franchisees for approximately $9.1 million. See Note 3 to the Consolidated Financial
Statements for further information on these transactions. Total capital expenditures for the fiscal year ended
December 27, 2005 were $82.1 million and were primarily related to the opening of 66 Company-owned bakery-
cafes in 2005, costs incurred on Company-owned bakery-cafes to be opened in the first and second quarter of 2006,
and the maintaining or remodeling of existing bakery-cafes and fresh dough facilities. Additionally, we acquired 21
cafes and two cafes under construction from a franchisee for $28.0 million. See Note 3 to the Consolidated Financial
Statements for further information on this transaction. Total capital expenditures were $80.4 million for the fiscal
year ended December 25, 2004 and were primarily related to the opening of 54 Company-owned bakery-cafes in
2004, costs incurred on Company-owned bakery-cafes to be opened in the first and second quarter of 2005, and the
maintaining or remodeling of existing bakery-cafes and fresh dough facilities. Additionally, in 2004, we acquired
one bakery-cafe from a franchisee for $0.2 million and acquired the membership interest of the former minority
interest owner for $4.9 million plus the transfer of two bakery-cafes and one bakery-cafe under construction. See
Note 3 to the Consolidated Financial Statements for further information on these transactions.
As of December 26, 2006 and December 27, 2005, we had investments of $20.0 million and $46.3 million,
respectively, in United States treasury notes and government agency securities. Investments are classified as short or
long-term in the accompanying Consolidated Balance Sheets based upon their stated maturity dates. As of
December 26, 2006, all investments were classified as held-to-maturity as we have the intent and ability to hold the
securities to maturity. Held-to-maturity securities are stated at amortized cost, adjusted for amortization of
premiums to maturity, which approximates fair value at December 26, 2006.
Financing Activities
Financing activities provided $13.7 million, $13.8 million, and $5.2 million for the fiscal years ended
December 26, 2006, December 27, 2005, and December 25, 2004, respectively. The financing activities for the
fiscal year ended December 26, 2006 included $7.7 million from the exercise of stock options, $4.3 million from the
tax benefit from exercise of stock options, and $1.6 million from the issuance of common stock under employee
benefit plans. The financing activities in the fiscal year ended December 27, 2005 included $12.6 million from the
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