Panera Bread 2007 Annual Report Download - page 72

amortization expense on these intangible assets as of December 25, 2007 was approximately (in thousands): $1,308
in 2008, $1,262 in 2009, $1,236 in 2010, $1,233 in 2011, $1,228 in 2012, and $15,560 thereafter.
9. Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 25,
2007
December 26,
2006
Unredeemed gift cards ..................................... $ 30,081 $ 20,768
Compensation and related employment taxes..................... 19,647 18,757
Capital expenditures ....................................... 17,473 23,396
Share repurchase settlement ................................. 11,220 —
Insurance ............................................... 9,155 7,551
Taxes, other than income tax ................................ 1,662 2,638
Advertising ............................................. 5,367 4,027
Rent .................................................. 5,251 2,987
Utilities ................................................ 3,735 2,188
Deferred acquisition purchase price (Note 3) ..................... 2,501 8,490
Other .................................................. 13,955 11,916
$120,047 $102,718
10. Credit Facility
On November 27, 2007, the Company and certain of its direct and indirect subsidiaries, as guarantors, entered
into a $75.0 million secured revolving credit facility agreement (“Credit Agreement”) with Bank of America, N.A.,
as administrative agent, and Banc of America Securities LLC, as sole lead arranger and sole book manager. The
borrowings under the Credit Agreement bear interest, at the Company’s option at the time each loan is made, at
either (a) the Base Rate determined by reference to the higher of (1) the prime rate of Bank of America, N.A., as
administrative agent, or (2) the Federal Funds Rate plus 0.50 percent or (b) LIBOR plus an Applicable Rate, ranging
from 0.50 percent to 1.50 percent, based on the Company’s Consolidated Leverage Ratio, as each term is defined in
the Credit Agreement. The Company also pays commitment fees for the unused portion of the credit facility on a
quarterly basis equal to the Applicable Rate for commitment fees times the actual daily unused commitment for that
calendar quarter. The Applicable Rate for commitment fees is between 0.10 percent and 0.30 percent based on the
Company’s Consolidated Leverage Ratio.
The facility includes usual and customary covenants for a credit facility of this type, including covenants
limiting liens, dispositions, fundamental changes, investments, indebtedness, and certain transactions and pay-
ments. In addition, the facility also requires that the Company satisfy two financial covenants at the end of each
fiscal quarter for the previous four consecutive fiscal quarters: (1) a consolidated leverage ratio less than or equal to
3.25 to 1.00, and (2) a consolidated fixed charge coverage ratio of greater than or equal to 2.00 to 1.00. The credit
facility, which is collateralized by the capital stock of the Company’s present and future material subsidiaries, will
become due on November 27, 2012, subject to acceleration upon certain specified events of default, including
breaches of representations or covenants, failure to pay other material indebtedness or a change of control of the
Company, as defined in the Credit Agreement.
The Credit Agreement allows the Company, on a one-time basis prior to February 29, 2008, to request that the
credit facility be increased to up to $250 million or such greater amount as may be mutually agreed by the Company
and the administrative agent, upon satisfaction of certain requirements. In addition, the Credit Agreement also
allows the Company from time to time to request that the credit facility be further increased by an amount not to
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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)