Panera Bread 2009 Annual Report Download - page 68

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7. Property and Equipment
Major classes of property and equipment consisted of the following (in thousands):
December 29,
2009
December 30,
2008
Leasehold improvements ................................... $375,689 $ 355,744
Machinery and equipment .................................. 236,196 221,963
Furniture and fixtures ...................................... 68,172 62,057
Signage ................................................ 17,848 17,129
Smallwares ............................................. 16,144 14,557
Construction in progress .................................... 17,880 12,452
731,929 683,902
Less: accumulated depreciation ............................... (328,145) (266,896)
Property and equipment, net ................................. $403,784 $ 417,006
The Company recorded depreciation expense related to these assets of $65.9 million, $65.9 million, and
$57.0 million in fiscal 2009, 2008, and 2007, respectively.
8. Goodwill
The changes in the carrying amount of goodwill at December 29, 2009 and December 30, 2008 were as follows
(in thousands):
Company Bakery-
Cafe Operations
Franchise
Operations
Fresh Dough
Operations Total
Balance December 25, 2007 ............ 83,463 1,934 1,695 87,092
Goodwill arising from acquisitions ....... 242 — — 242
Balance December 30, 2008 ............ $83,705 $1,934 $1,695 $87,334
Goodwill arising from acquisitions ....... 147 — — 147
Balance December 29, 2009 ............ $83,852 $1,934 $1,695 $87,481
Goodwill accumulated amortization was $7.9 million at December 29, 2009 and December 30, 2008.
9. Other Intangible Assets
Other intangible assets consisted of the following (in thousands):
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
December 29, 2009 December 30, 2008
Trademark ................ $ 5,610 $ (742) $ 4,868 $ 5,610 $ (488) $ 5,122
Re-acquired territory rights .... 14,629 (2,357) 12,272 14,629 (1,571) 13,058
Favorable leases ............ 2,776 (721) 2,055 2,776 (481) 2,295
Total other intangible assets .... $23,015 $(3,820) $19,195 $23,015 $(2,540) $20,475
Amortization expense on these intangible assets for the fiscal years ended December 29, 2009, December 30,
2008, and December 25, 2007, was approximately (in thousands): $1,280, $1,303, and $935 respectively. Future
62
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)