Panera Bread 2006 Annual Report Download - page 53

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5. Property and Equipment
Major classes of property and equipment consist of the following (in thousands):
December 26,
2006
December 27,
2005
Leasehold improvements ................................... $218,464 $ 174,043
Land and land improvements ................................ 13 712
Machinery and equipment .................................. 154,442 120,099
Furniture and fixtures ...................................... 37,189 28,897
Signage ................................................ 10,525 7,708
Smallwares ............................................. 9,702 6,657
Construction in progress .................................... 74,085 48,988
504,420 387,104
Less: accumulated depreciation ............................... (158,443) (118,295)
Property and equipment, net ................................. $345,977 $ 268,809
The Company recorded depreciation expense related to these assets of $43.9 million, $33.0 million, and
$25.3 million in 2006, 2005, and 2004, respectively.
6. Goodwill
The changes in the carrying amount of goodwill at December 26, 2006 and December 27, 2005 are as follows
(in thousands):
Company Bakery-
Cafe Operations
Fresh Dough
Operations Total
Balance December 25, 2004 ...................... $34,599 $728 35,327
Minority interest owner acquisition ................. 226 226
Indiana acquisition ............................. 12,987 12,987
Balance December 27, 2005 ...................... 47,812 728 48,540
Indiana acquisition ............................. 57 57
State College acquisition ........................ 1,707 1,707
Panebraska acquisition .......................... 6,888 6,888
Balance December 26, 2006 ...................... $56,464 $728 $57,192
Goodwill accumulated amortization was $7.9 million at December 26, 2006 and December 27, 2005.
48
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)