Panera Bread 2008 Annual Report Download - page 44

During the fiscal 2007, we received $2.4 million of cash redemptions at an average net asset value of $0.988
subsequent to the withdrawal restriction, which we classified as investment maturity proceeds provided by investing
activities. In total, we recognized a net realized and unrealized loss on the Columbia Portfolio units of $1.0 million
in fiscal 2007 related to the fair value measurements and redemptions received and included the net loss in net cash
provided by operating activities.
During fiscal 2008, we had no investments in United States treasury notes and government agency securities,
and we made no additional purchases of investments. During fiscal 2007, the $20.0 million of investments in
government securities outstanding as of December 26, 2006 matured or were called by the issuer and we did not
purchase any additional investments in government securities. During fiscal 2006, we purchased $30.6 million of
investments in government securities and $57.2 million of investments in government securities matured or were
called by the issuer. We recognized interest income on investments in government securities of $0.2 million during
fiscal 2007 and $1.8 million during fiscal 2006. This interest income includes premium amortization of $0.03 mil-
lion in fiscal 2007 and discount amortization of $0.3 million in fiscal 2006, and is classified in other (income)
expense, net in our consolidated financial statements.
Financing Activities
Financing activities in fiscal 2008 included $75.0 million used in net repayments under our credit facility,
$48.9 million used to repurchase our Class A common stock, $17.6 million received from the exercise of stock
options, $3.4 million received from the tax benefit from the exercise of stock options, $1.9 million received from the
issuance of common stock under employee benefit plans, and $1.2 million used for debt issuance costs. Financing
activities in fiscal 2007 included $75.0 million from borrowings under a credit facility, $6.6 million from the
exercise of stock options, $3.7 million from the tax benefit from exercise of stock options, $1.8 million from the
issuance of common stock under employee benefit plans, $27.5 million used to repurchase common stock and
$0.2 million used for debt issuance costs. Financing activities in fiscal 2006 included $7.7 million from the exercise
of stock options, $4.3 million from the tax benefit from exercise of stock options, and $1.6 million from the issuance
of common stock under employee benefit plans.
On November 27, 2007, in connection with a share repurchase program approved by our Board of Directors on
November 20, 2007, we entered into a written trading plan in compliance with Rule 10b5-1 under the Securities
Exchange Act of 1934, as amended, to purchase up to an aggregate of $75.0 million of our Class A common stock,
subject to maximum per share purchase price. Under the share repurchase program, we repurchased a total of
752,930 shares of our Class A common stock at a weighted-average price of $36.02 per share for an aggregate
purchase price of $27.1 million during fiscal 2007. During fiscal 2008, we repurchased a total of 1,413,358 shares of
our Class A common stock at a weighted-average price of $33.87 per share for an aggregate purchase price of
$47.9 million, which completed our share repurchase program. Repurchased shares were retired immediately and
resumed the status of authorized but unissued shares.
We also repurchased Class A common stock surrendered by participants under the Panera Bread 1992 Stock
Incentive Plan and the Panera Bread 2006 Stock Incentive Plan, which we refer to as the Plans, as payment of
applicable tax withholding on the vesting of restricted stock. During fiscal 2008, we repurchased a total of
20,378 shares of Class A common stock surrendered by participants in the Plans at a weighted-average price of
$49.87 per share for an aggregate purchase price of $1.0 million pursuant to the terms of the Plans and the applicable
award agreements. These share repurchases were not made pursuant to publicly announced share repurchase
programs. During fiscal 2007, we repurchased a total of 6,594 shares of Class A common stock surrendered by
participants in the Plans at a weighted-average price of $43.62 per share for an aggregate purchase price of
$0.3 million pursuant to the terms of the Plans and the applicable award agreements. These share repurchases were
not made pursuant to publicly announced share repurchase programs.
On March 7, 2008, we, and certain of our direct and indirect subsidiaries, as guarantors, entered into an
amended and restated credit agreement, referred to as the Amended and Restated Credit Agreement, with Bank of
America, N.A., and other lenders party thereto to amend and restate in its entirety our Credit Agreement, dated as of
November 27, 2007, by and among us, Bank of America, N.A., and the lenders party thereto, referred to as the
Original Credit Agreement. Pursuant to a request by us under the terms of the Original Credit Agreement, the
37