Panera Bread 2007 Annual Report Download - page 71

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6. Property and Equipment
Major classes of property and equipment consist of the following (in thousands):
December 25,
2007
December 26,
2006
Leasehold improvements ................................... $318,427 $ 218,464
Land and land improvements ................................ 13 13
Machinery and equipment .................................. 205,077 154,442
Furniture and fixtures ...................................... 53,608 37,189
Signage ................................................ 15,319 10,525
Smallwares ............................................. 13,393 9,702
Construction in progress .................................... 30,803 74,085
636,640 504,420
Less: accumulated depreciation ............................... (206,648) (158,443)
Property and equipment, net ................................. $429,992 $ 345,977
The Company recorded depreciation expense related to these assets of $57.0 million, $43.9 million, and
$33.0 million in fiscal 2007, 2006, and 2005, respectively.
7. Goodwill
The changes in the carrying amount of goodwill at December 25, 2007 and December 26, 2006 are as follows
(in thousands):
Company Bakery-
Cafe Operations
Franchise
Operations
Fresh Dough
Operations Total
Balance December 27, 2005 ............ $47,812 $ — $ 728 $48,540
Goodwill arising from acquisitions ....... 8,652 — — 8,652
Balance December 26, 2006 ............ 56,464 — 728 57,192
Goodwill arising from acquisitions ....... 26,999 1,934 967 29,900
Balance December 25, 2007 ............ $83,463 $1,934 $1,695 $87,092
Goodwill accumulated amortization was $7.9 million at December 25, 2007 and December 26, 2006.
8. 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 25, 2007 December 26, 2006
Trademark ................. $ 5,610 $ (267) $ 5,343 $ — $ — $ —
Re-acquired territory rights . . . . 14,629 (776) 13,853 6,129 (202) 5,927
Favorable leases............. 2,798 (167) 2,631 750 (73) 677
Total other intangible assets . . . . $23,037 $(1,210) $21,827 $6,879 $(275) $6,604
Amortization expense on these intangible assets for the fiscal years ended December 25, 2007, December 26,
2006, and December 27, 2005, was approximately (in thousands): $935, $226, and $46, respectively. Future
61
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)