Panera Bread 2011 Annual Report Download - page 66

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10. Accrued Expenses
Accrued expenses consisted of the following (in thousands):
Unredeemed gift cards, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation and related employment taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes, other than income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fresh dough and other product operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loyalty program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Litigation settlement (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred acquisition purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 27,
2011
$ 58,321
41,491
23,629
19,116
18,512
7,101
5,958
5,916
5,334
5,000
4,170
2,565
2,236
23,101
$ 222,450
December 28,
2010
$ 47,716
43,788
20,212
13,057
16,281
5,071
7,084
4,280
9,866
7,125
3,547
5,040
1,962
19,141
$ 204,170
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.
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 27,
2011. The proceeds from the credit facility will be used for general corporate purposes, including working capital, capital
expenditures, permitted acquisitions, and share repurchases.