Panera Bread 2010 Annual Report Download - page 70

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8. Goodwill
The following is a reconciliation of the beginning and ending balances of the Company’s goodwill by
reportable segment at December 28, 2010 and December 29, 2009 (in thousands):
Company Bakery-
Cafe Operations
Franchise
Operations
Fresh Dough
Operations Total
Balance December 30, 2008 ............ $83,705 $1,934 $1,695 $87,334
Goodwill arising from acquisitions ....... 147 — — 147
Balance as of December 29, 2009 ........ $83,852 $1,934 $1,695 $87,481
Acquisition of Canada franchisee ........ 2,336 — — 2,336
Acquisition of New Jersey franchisee ..... 4,589 — — 4,589
Currency translation . . . ............... 36 — — 36
Balance as of December 28, 2010 ........ $90,813 $1,934 $1,695 $94,442
Goodwill accumulated amortization, recognized under the previous authoritative guidance for accounting for
goodwill, was $7.9 million at December 28, 2010 and December 29, 2009. The Company has never reported a
goodwill impairment charge.
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 28, 2010 December 29, 2009
Trademark .......... $ 5,610 $ (996) $ 4,614 $ 5,610 $ (742) $ 4,868
Re-acquired territory
rights............ 43,729 (3,757) 39,972 14,629 (2,357) 12,272
Favorable leases ...... 4,836 (1,020) 3,816 2,776 (721) 2,055
Total other intangible
assets ............ $54,175 $(5,773) $48,402 $23,015 $(3,820) $19,195
Amortization expense on these intangible assets for the fiscal years ended December 28, 2010, December 29,
2009, and December 30, 2008, was approximately: $2.0 million, $1.3 million, and $1.3 million respectively. Future
amortization expense on these intangible assets as of December 28, 2010 is estimated to be approximately:
$4.1 million in 2011, $4.0 million in 2012, $4.0 million in 2013, $3.9 million in 2014, $3.9 million in 2015 and
$28.5 million thereafter.
63
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)