Panera Bread 2006 Annual Report Download - page 54

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7. Other Intangible Assets
Other intangible assets consist of the following (in thousands):
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
December 26, 2006 December 27, 2005
Re-acquired territory
rights............... $6,129 $(202) $5,927 $3,000 $(23) $2,977
Favorable Leases ........ 750 (73) $ 677 268 (26) $ 242
Total Other Intangible
Assets .............. $6,879 $(275) $6,604 $3,268 $(49) $3,219
Amortization expense on these intangible assets for the fiscal years ended December 26, 2006, December 27,
2005, and December 25, 2004, was approximately (in thousands) $226, $46, and $3, respectively. Future
amortization expense on these intangible assets as of December 26, 2006 was approximately (in thousands):
$374 in 2007, $381 in 2008, $372 in 2009, $368 in 2010, $367 in 2011, and $4,756 thereafter.
8. Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 26,
2006
December 27,
2005
Capital expenditures ....................................... $ 23,396 $15,208
Unredeemed gift cards ..................................... 20,768 13,576
Compensation and related employment taxes..................... 18,757 20,104
Accrued acquisition purchase price (Note 3) ..................... 8,490 —
Insurance ............................................... 7,551 8,948
Accrued advertising ....................................... 4,027 3,102
Rent .................................................. 2,987 2,351
Taxes, other than income tax ................................ 2,638 1,338
Accrued utilities.......................................... 2,188 1,832
Income taxes ............................................ — 3,338
Other .................................................. 11,916 11,762
$102,718 $81,559
9. Line of Credit
The Company’s $10.0 million unsecured revolving line of credit expired on December 19, 2006 and was not
renewed. As of December 26, 2006, the Company has a $0.1 million outstanding letter of credit in support of certain
operational activities.
10. Commitments and Contingent Liabilities
The Company is obligated under non-cancelable operating leases for its bakery-cafes, fresh dough facilities
and trucks, and administrative offices. Lease terms for its trucks are generally for five to seven years. Lease terms for
its bakery-cafes, fresh dough facilities, and administrative offices 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,
49
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)