Panera Bread 2008 Annual Report Download - page 75

The Amended and Restated Credit Agreement allows the Company from time to time to request that the credit
facility be further increased by an amount not to exceed, in the aggregate, $150.0 million, subject to receipt of lender
commitments and other conditions precedent. The Company has not exercised these requests for increases in
available borrowings as of December 30, 2008. The proceeds from the credit facility will be used for general
corporate purposes, including working capital, capital expenditures, and permitted acquisitions and share
repurchases.
As of December 30, 2008, the Company had no loans outstanding under the Amended and Restated Credit
Agreement. The Company incurred $0.3 million of commitment fees and $1.2 million of interest for the fiscal year
ended December 30, 2008. As of December 30, 2008, the Company was in compliance with all covenant
requirements in the Amended and Restated Credit Agreement, and accrued interest related to the commitment
fees on the Amended and Restated Credit Agreement was $0.1 million. In connection with the amendment and
restatement of the Original Credit Agreement, the Company capitalized $1.2 million of debt issuance costs in fiscal
2008, which are being amortized over the life of the Amended and Restated Credit Agreement.
As of December 25, 2007, the Company had a $75.0 million LIBOR rate loan outstanding under the Original
Credit Agreement based on a one-month LIBOR rate of 4.82 percent plus an Applicable Rate of 0.50 percent. The
Company incurred $0.3 million of interest during the fiscal year ended December 25, 2007, all of which was
included in accrued liabilities at the balance sheet date. The Company incurred an inconsequential amount of
commitment fees for the fiscal year ended December 25, 2007.
12. Share Repurchase Program
On November 27, 2007, in connection with a share repurchase program approved by the Company’s Board of
Directors on November 20, 2007, the Company 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 the
Company’s Class A common stock, subject to maximum per share purchase price. The Company entered into a
credit facility that initially provided for $75.0 million in secured loans to the Company. Proceeds from the credit
facility were used to finance the share repurchase program. See Note 11 for further information with respect to the
credit facility. Under the share repurchase program, the Company repurchased a total of 752,930 shares of its
Class A common stock at a weighted-average price of $36.02 per share for an aggregate purchase price of
$27.1 million during the fiscal year ended December 25, 2007. During the fiscal year ended December 30, 2008, the
Company repurchased a total of 1,413,358 shares of its 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 its share repurchase program.
Shares repurchased under the program were retired immediately and resumed the status of authorized but unissued
shares.
13. Commitments and Contingent Liabilities
Operating Lease Commitments
The Company is obligated under non-cancelable operating leases for its bakery-cafes, fresh dough facilities
and trucks, and administrative offices. Lease terms for its trucks are generally for five to seven years. Lease terms for
its bakery-cafes, fresh dough facilities, and administrative offices are generally for ten years with renewal options at
certain locations and generally require the Company to pay a proportionate share of real estate taxes, insurance,
common area, and other operating costs. Many bakery-cafe leases provide for contingent rental (i.e., percentage
rent) payments based on sales in excess of specified amounts. Certain of the Company’s lease agreements provide
for scheduled rent increases during the lease terms or for rental payments commencing at a date other than the date
of initial occupancy.
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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)