Panera Bread 2008 Annual Report Download - page 74

10. Accrued Expenses
Accrued expenses consisted of the following (in thousands):
December 30,
2008
December 25,
2007
Unredeemed gift cards ..................................... $ 33,042 $ 30,081
Compensation and related employment taxes..................... 22,508 19,647
Insurance ............................................... 12,482 9,155
Capital expenditures ....................................... 6,448 17,473
Fresh dough operations .................................... 5,191 5,663
Taxes, other than income tax ................................ 4,898 1,662
Rent .................................................. 4,567 5,251
Advertising ............................................. 3,698 5,367
Utilities ................................................ 3,258 3,735
Deferred revenue ......................................... 2,024 1,393
Income taxes payable ...................................... 1,259 —
Share repurchase settlement ................................. — 11,220
Deferred acquisition purchase price (Note 3) ..................... — 2,501
Other .................................................. 10,603 8,292
$109,978 $121,440
11. Credit Facility
On March 7, 2008, the Company and certain of its direct and indirect subsidiaries, as guarantors, entered into
an amended and restated credit agreement (the “Amended and Restated Credit Agreement”) with Bank of America,
N.A., and other lenders party thereto to amend and restate in its entirety the Company’s Credit Agreement, dated as
of November 27, 2007, by and among the Company, Bank of America, N.A., and the lenders party thereto (the
“Original Credit Agreement”). The Amended and Restated Credit Agreement provides for a secured revolving
credit facility of $250.0 million. The borrowings under the Amended and Restated 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 0.75 percent to 1.50 percent, based on the
Company’s Consolidated Leverage Ratio, as each term is defined in the Amended and Restated 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 0.15 percent and 0.30 percent based on the Company’s
Consolidated Leverage Ratio.
The Amended and Restated Credit Agreement 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 payments. In addition, the Amended and Restated Credit Agreement also requires 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 March 7, 2013, 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 Amended and Restated
Credit Agreement.
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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)