Panera Bread 2009 Annual Report Download - page 41

investments in government securities outstanding matured or were called by the issuer and we did not purchase any
additional investments in government securities. We recognized interest income on the investments in government
securities of $0.2 million during fiscal 2007. This interest income included premium amortization of $0.03 million
and is classified in other (income) expense, net in our consolidated financial statements.
Financing Activities
Financing activities in fiscal 2009 included $22.8 million received from the exercise of employee stock
options, $5.1 million received from the tax benefit from exercise of stock options, and $1.6 million received from
the issuance of common stock under employee benefit plans, partially offset by $20.1 million used to purchase the
remaining interest of Paradise and $3.5 million to repurchase our Class A common stock. 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.
Purchase of Noncontrolling Interest
On June 2, 2009, we exercised our right to purchase the remaining 49 percent of the outstanding stock of
Paradise, excluding certain agreed upon assets totaling $0.7 million, for a purchase price of $22.3 million,
$0.1 million in transaction costs, and settlement of $3.4 million of debt owed to us by the shareholders of the
remaining 49 percent of Paradise. Approximately $20.0 million of the purchase price, as well as the transaction
costs, were paid on June 2, 2009, with $2.3 million retained by us for certain holdbacks. The holdbacks are primarily
for certain indemnifications and expire on the second anniversary of the transaction closing date, with any
remaining holdback amounts reverting to the prior shareholders of the remaining 49 percent of Paradise. The
transaction was accounted for as an equity transaction, by adjusting the carrying amount of the noncontrolling
interest balance to reflect the change in our ownership interest in Paradise, with the difference between fair value of
the consideration paid and the amount by which the noncontrolling interest was adjusted recognized in equity
attributable to us.
Share Repurchases
On November 17, 2009, our Board of Directors approved a three year share repurchase program of up to
$600 million of our Class A common stock. The share repurchases will be effected from time to time on the open
market or in privately negotiated transactions and we may make such repurchases under a Rule 10b5-1 Plan.
Repurchased shares will be retired immediately and will resume the status of authorized but unissued shares. The
repurchase program may be modified, suspended, or discontinued by our Board of Directors at any time. Under the
share repurchase program, we repurchased a total of 27,429 shares of our Class A common stock at a weighted-
average price of $62.98 per share for an aggregate purchase price of $1.7 million in fiscal 2009.
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 this share repurchase program. Repurchased shares were retired immediately and
resumed the status of authorized but unissued shares.
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