Panera Bread 2007 Annual Report Download - page 84

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The fair value of restricted stock is determined based on the market value of the Company’s stock on the grant
date. A summary of the status of the Company’s restricted stock activity is set forth below:
Restricted
Stock
Weighted
Average
Grant-Date
Fair Value
(in thousands)
Non-vested at December 27, 2005 ............................. 92 $52.88
Granted ............................................... 170 51.59
Vested ................................................ — —
Forfeited .............................................. (9) 51.32
Non-vested at December 26, 2006 ............................. 253 52.07
Granted ............................................... 187 43.67
Vested ................................................ (24) 54.24
Forfeited .............................................. (29) 48.86
Non-vested at December 25, 2007 ............................. 387 $48.04
As of December 25, 2007, there was $12.4 million of total unrecognized compensation cost related to
restricted stock, which is net of a $3.1 million forfeiture estimate, and is expected to be recognized over a weighted-
average period of approximately 3.6 years.
17. Defined Contribution Benefit Plan
The Panera Bread Company Savings Plan (the “Plan”) was formed under Section 401(k) of the Code. The Plan
covers substantially all employees who meet certain service requirements. Participating employees may elect to
defer on a pre-tax basis up to 15 percent of his or her salary, subject to the limitations imposed by the Code. The Plan
provides for a matching contribution by the Company equal to 50 percent of the first 3 percent of the participant’s
eligible pay. All employee contributions vest immediately. Company matching contributions vest beginning in the
second year of employment at 25 percent per year, and are fully vested after 5 years. The Company contributed
$0.9 million, $0.7 million and $0.5 million to the Plan in 2007, 2006, and 2005, respectively.
18. Other Income and Expense
Other (income) expense, net was $0.3 million, ($2.0) million, and ($1.1) million in 2007, 2006, and 2005,
respectively. The decrease in other income and expense for the fiscal year ended December 25, 2007 compared to
2006 was primarily from lower interest income in 2007 resulting from lower cash and investments on-hand in 2007;
a charge of approximately $0.2 million in the first quarter of 2007 stemming from the Paradise acquisition; a charge
of approximately $1.1 million in the second quarter of 2007 relating to the termination of franchise agreements for
certain acquired franchise-operated bakery-cafes that operated at a royalty rate lower than the current market
royalty rates; and a charge of approximately $1.0 million in the fourth quarter of 2007 relating to an unrealized loss
of the Company’s investment in a private placement of units of beneficial interest in the Columbia Portfolio, which
is an enhanced cash fund sold as an alternative to money-market funds, as a result of adverse market conditions that
unfavorably affected the fair value and liquidity availability of collateral underlying the Columbia Portfolio. See
further discussion regarding the Columbia Portfolio in Note 4 to the accompanying consolidated financial
statements. Partially offsetting these items was a $0.5 million gain from the sale of a bakery-cafe to a franchisee
in the second quarter of 2007. See Note 3 to the accompanying consolidated financial statements for further
information with respect to the acquisition charges and gain on sale of the bakery-cafe.
74
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)