Panera Bread 2008 Annual Report Download - page 72

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enhanced cash fund sold as an alternative to money-market funds. See Note 4 for further information related to the
Columbia Portfolio.
At December 26, 2006, the Company’s short-term investments consist of treasury notes and government
agency securities issued and fully guaranteed by the United States. There were $20.0 million of investments in
government securities at December 26, 2006 which were classified as held-to-maturity as the Company had the
intent and ability to hold the securities to maturity. During fiscal 2007, the $20.0 million of the investments in
government securities outstanding at December 26, 2006 matured or were called by the issuer and no additional
investments in government securities were purchased by the Company. During fiscal 2007 and 2006, the Company
recognized interest income on these investments of $0.2 million and $1.8 million, respectively, which includes
premium amortization of $0.03 million in fiscal 2007 and discount amortization of $0.3 million in fiscal 2006, and
is classified in other (income) expense, net in the Consolidated Statements of Operations.
6. Inventories
Inventories consisted of the following (in thousands):
December 30,
2008
December 25,
2007
Food:
Fresh dough facilities:
Raw materials ........................................ $ 3,040 $ 2,849
Finished goods ....................................... 319 421
Bakery-cafes:
Raw materials ........................................ 6,533 6,353
Paper goods ............................................. 2,021 1,635
Retail merchandise ........................................ 46 136
$11,959 $11,394
7. Property and Equipment
Major classes of property and equipment consisted of the following (in thousands):
December 30,
2008
December 25,
2007
Leasehold improvements ................................... $355,744 $ 318,427
Land and land improvements ................................ — 13
Machinery and equipment .................................. 221,963 205,077
Furniture and fixtures ...................................... 62,057 53,608
Signage ................................................ 17,129 15,319
Smallwares ............................................. 14,557 13,393
Construction in progress .................................... 12,452 30,803
683,902 636,640
Less: accumulated depreciation ............................... (266,896) (206,648)
Property and equipment, net ................................. $417,006 $ 429,992
The Company recorded depreciation expense related to these assets of $65.9 million, $57.0 million, and
$43.9 million in fiscal 2008, 2007, and 2006, respectively.
65
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)